The trajectory of mortgage rates has shot upwards again after three major lenders announced price increases.
It continues the direction of travel from last week’s round-up, as a quartet of providers including Barclays and TSB decided to hike their rates.
You can expect to pay an average of 5.87% for a two-year fixed residential mortgage rate, while a five-year equivalent is 5.44%. Both rates have remained the same since the beginning of this week, according to Moneyfacts’ data.
To help you decide the best provider for your new home purchase, YourMoney.com has gathered the latest rate changes for borrowers.
NatWest makes sweeping product changes
NatWest continued its hikes from last week by raising prices on its first-time buyer, buy-to-let and shared equity product ranges. It also introduced a higher price for a two-year fixed purchase deal at 60% loan to value (LTV), rising by 0.8% to 5.07%.
If you want to finance more of your property, the 95% LTV option is priced at 6.32%. To remortgage your property with the lender at 60% LTV, you can pay a fee of £995 for a rate of 4.87% – a 0.14% rise.
The fee-free alternative rose from 4.99% to 5.17% but comes with £250 cashback. For a longer-term choice with no fees, the five-year fix went up to 4.62% for a 60% LTV deal.
As well as nudging up the prices for its current deals, the lender has ditched cheaper options in return for new deals with fees included.
One option is a five-year fix at 60% LTV with a £1,495 fee at 4.4%, and another is a fee-free alternative at 4.45%.
On the same day that NatWest announced it was hiking its prices, so did Santander, by applying increases to new business and product transfer markets.
Surges for fixed residential rates on new business purchases and remortgage deals will be to the tune of up to 0.2% and every large loan fixed rate will feel a 0.1% boost.
Nationwide and Halifax follow mortgage rates’ trend
All new business buy-to-let fixed rates will also see a rise of 0.25%, and select buy-to-let fixed product transfers will increase between 0.05% and 0.17%.
Nationwide made it a trio of providers to increase rates on 29 April, with fixed rates for new and existing customers.
If you are already banking with the lender, a two-year fix at 60% LTV for homemovers will cost 4.79% with a £1,499. If you pay a reduced fee of £999, that deal is priced at 4.84%, while a fee-free alternative is 5.04% – a rise of 0.15%.
For remortgage customers, the mutual offers a two-year fix at 60% LTV for 4.84% with a £1,499 fee and 4.89% with a £999 charge. If you do not want a fee included, you can pay 5.19% for that deal. However, its tracker rates have stayed the same this week.
Interest-only amount boosted
Meanwhile, Halifax increased rates by up to 0.20% on selected homemover, first-time buyer, remortgage and product transfer deals.
Following last week’s move, the lender has boosted the maximum LTV ratio for part-interest mortgages for borrowers to 85%.
This is a 10% increase from its previous limit and only applies to mortgages applied for starting from 30 April.
The provider has no further changes on its pure interest-only deals, which will stay at 75% LTV.
