Green Home mortgage rates on selected two- and five-year fixed products are also reducing by up to 0.66%. Within Barclays’ remortgage-only range, two-year fixed rates at 60% LTV have been cut by 15bps, now available from 4.39% on a Premier product and 4.42% on the standard product, both with a £999 fee. Selected two- and five-year existing customer Reward rates have also been reduced by up to 11bps.
“Mortgage lenders have continued to make their rates more competitively priced in recent weeks but the pace of fixed-rate price reductions has slowed significantly,” noted Aaron Strutt (pictured right), product director at Trinity Financial. “More widespread conflict has ticked up in the Middle East – as a result, swaps have climbed and some of the lenders are repricing again.”
Nationwide’s increases, also effective from tomorrow, apply to first-time buyer, home mover, existing customers moving home, and remortgage products.
“After the wave of cuts earlier this month, lenders are adjusting to a change in market conditions,” said Nicholas Mendes (pictured right), mortgage technical manager at John Charcol.
“The driver is funding costs. Swaps briefly dipped below 4% across the one-to-five-year range at the start of July, which fuelled the round of cuts borrowers enjoyed just a week ago, but events in the Middle East have pushed them back up, with two-year swaps now at 4.179% and five-year at 4.260%. Lenders price off swaps, so some repricing was to be expected, and it’s worth keeping perspective.”
