According to the latest Rightmove figures, the largest increase was for two-year fixed rates at 95 per cent loan to value (LTV) which went up week-on-week by 0.13 per cent to 5.6 per cent. This compares to an average rate of 3.21 per cent last year.
The average five-year fixed rate at 95 per cent LTV has fallen by 0.03 per cent week-on-week to 5.15 per cent.
At 90 per cent LTV, the average two-year fixed rate rose over the past week by 0.05 per cent to 5.12 per cent and the average five-year fixed rate went up by 0.04 per cent to 4.79 per cent.
At 85 per cent LTV, the increase for the average two-year fixed rate was 0.05 per cent to 4.9 per cent and 0.04 per cent to 4.56 per cent for the average five-year fixed rate.
The average two-year fixed rate at 75 per cent LTV went up by 0.06 per cent to 4.73 per cent, and the five-year fixed rate rose by 0.05 per cent to 4.41 per cent.
At the 60 per cent LTV tier, two-year fixed rates went up by 0.06 per cent to 4.63 per cent and 0.04 per cent to 4.27 per cent for the five-year fixed rate.
‘Rates could rise in coming weeks’
Rightmove’s mortgage expert Matt Smith said: “We’ve seen average rates edge up across most two-year and five-year LTV mortgages after the Bank of England’s decision to increase the base rate last week, but more importantly, as a result of its forecast that inflation may not come down as quickly as originally hoped.
“This has resulted in swap rates – the underlying costs of lenders’ fixed-rate deals – increasing slightly, and these have been passed through to lenders’ mortgage rates.”
He added: “To put this week’s changes into context, average mortgage rates are approximately where they were at the beginning of April, before some fluctuation of rates.
“Looking forward, we can expect more lenders to increase rates slightly in the coming weeks, as the base rate decision and economic outlook continues to filter through to lender rates.”
