The Rightmove weekly mortgage tracker has revealed that average rates across all LTV tiers have risen by 0.06% since last week. But products at lower LTVs have risen most steeply.  

Products at 75% LTV saw the most significant changes on average, with a two-year fix rising by 0.09% to 4.67% and a five-year fix increasing by 0.1% to 4.36%. 

Smaller rises were seen across high LTV deals. The average two-year fixed mortgage rate at 90% LTV rose by just 0.03% since last week to 5.07%, and the average five-year fixed rate increased to 4.75%, which was a 0.06% difference. 

At 95 per cent LTV, the average two-year fixed rate rose by 0.02% to 5.47%, and the average five-year fixed rate increased by 0.08% to 5.18%. 

Braced for a base rate rise

Matt Smith, mortgage expert at Rightmove, said lenders were putting rates up in preparation for the Bank of England’s base rate announcement today, as this could impact the underlying costs of fixed rate mortgages. 

He added: “Looking ahead, the direction of rates over the coming week will be heavily influenced by the Bank of England’s analysis on inflation, and the future path for the base rate, which will accompany the decision tomorrow.  

“If the bank outlines a positive view on the prospect for inflation and base rates, we could see mortgage rates fall, as they have done after recent base rate decisions. But if the bank is more cautious, we can expect rates to continue their upward trend in the short term.”