Average fixed homeowner mortgage rates edge up following dip
The mortgage market remains volatile, according to Moneyfactscompare.co.uk, which released the figures.
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Your support makes all the difference.Average two and five-year fixed homeowner mortgage rates edged back up on Friday, after a dip the previous day, reflecting the volatility remaining in the market, according to a financial information website.
Moneyfactscompare.co.uk, which released the figures, said while some new, more attractive deals have been launched, there have also been some rate increases which has affected the overall averages.
Average two and five-year fixed mortgage rates both edged up by 0.01 percentage point on Friday, compared with the previous day.
The average two-year fixed mortgage rate is 6.80% while the average five-year fix is 6.32%.
The average two-year homeowner mortgage rate on the market had edged down to 6.79% on Thursday, from 6.81% the previous day.
It may take a few weeks for more improvements to surface, especially as another base rate decision looms
Five-year fixes fell back to 6.31% on Thursday, down from 6.33% on Wednesday.
The last weekday that both two and five-year fixed-rate mortgages had fallen compared with the previous day was in May, Moneyfacts said.
MPowered Mortgages launched some new rates on Friday, including two-year rates reduced by up to 0.26 percentage points, according to Moneyfacts’ records. The Co-operative Bank also launched new deals on Thursday.
Sitting among Moneyfactscompare.co.uk’s “best buy” tables this week are a two-year fixed-rate from Cumberland Building Society for people with a 25% deposit at 5.96% and a two-year fix for people with a 5% deposit from Cambridge Building Society, at 6.04%.
On Wednesday, it emerged that inflation had slowed quicker than expected, giving a glimmer of hope for under-pressure mortgage borrowers.
The Office for National Statistics said the Consumer Prices Index fell to 7.9% last month, down from 8.7% in May.
The Bank of England uses base rate rises as a tool to subdue inflation.
The Bank is still expected to raise interest rates – currently at 5% – at its next meeting on August 3 as it battles to bring inflation back to its 2% goal.
But experts have said the bigger-than-expected fall in inflation could see the Bank’s policymakers opt for a smaller increase of 0.25 percentage points rather than another 0.5 percentage point rise.
Some mortgage experts have said swap rates, which lenders use to price fixed-rate mortgages, have been calmer in recent days.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “The mortgage market remains volatile and despite seeing a few rate rises this week, we have also seen a few attractive mortgage packages launched onto the market for borrowers to consider.
“It may take a few weeks for more improvements to surface, especially as another base rate decision looms.”