The yo-yoing of mortgage rates continues this week as providers opted to increase their prices for borrowers.
Last week, Gen H and Coventry Building Society went against the grain and dropped rates, but there’s only a slither of similar activity this time around.
The average two-year fixed residential mortgage rate stands at 5.79%, which, despite the recent rises, is down an average rate of 5.80% on the previous working day, Moneyfacts data show.
A five-year equivalent is priced at 5.35%, which is unchanged from the previous working day.
Here’s YourMoney.com’s round-up of the latest movements in the mortgage sector.
Prices rise for Nationwide’s switcher borrowers
Nationwide Building Society increased rates for switcher products and additional borrowing deals, with the cuts applying to two- and five-year fixed-rate deals.
Across its switcher range, the two-year fixed rate at 60% loan to value (LTV) increased to 4.69% with a £999 fee and up to 4.99% without a fee. For five-year fixes to finance up to 60% of your property, there are rates of 4.29% and 4.49% with a fee and no fee respectively.
To cover a larger proportion of your home, the two-year fixed rate is 4.84% with a £999 fee and 5.09% without a fee.
Rates continued to rise for its deals up to 95% LTV – its two-year fixed rate at 90% LTV is 5.5% with a £999 fee, and its five-year equivalent is 5.19%. Fee-free alternatives are available for 5.7% for two years and 5.24% for five.
The additional borrowing range with a minimum loan of £5,000 was increased, with two-year fixes starting from 4.69% and five-year deals from 4.29%.
TSB hikes for first-time buyers and homemovers
Elsewhere, TSB announced it has hiked rates up to 0.25% for first-time buyers and homemovers. Its remortgage rates for five-year fixes increased by the same amount with a 75-90% LTV.
From 20 March, product transfers will also rise by up to 0.2% on two-year fixed-rate deals to finance up to 85% of your property.
Additional borrowing customers will see rates increase for two-, three- and five-year fixed deals up to 80% LTV by 0.1%.
Meanwhile, Clydesdale increased rates across its select mortgage range on two- and five-year deals at 65% and 75% LTV by 0.13%. Professional borrowers will see rates creep up by 0.05%, with exclusive residential deals rising by 0.1%.
However, its select buy-to-let and interest-only rates dropped by up to 0.3%. This was the amount cut for both two- and five-year buy-to-let rates, with interest-only deals at 80% falling by 0.05%.
‘Residential mortgage market all over the place’
Mark Robinson, managing director at Albion Forest Mortgages, told the Newspage agency: “The residential mortgage market is all over the place right now. Some lenders are making multiple increases in a week, and others are randomly dropping rates. At this stage, it’s almost anyone’s guess what could happen next.
“Whilst the market is turbulent at the moment, the lowering of buy-to-let rates is a welcome change. Landlords appear to have seen far fewer rate decreases lately.”
Additional reporting is included from our sister title Mortgage Solutions.
