Fixed rate mortgage increases were more in evidence this week but as Moneyfacts spokesperson Caitlyn Eastell points out, towards the latter end a few welcome rate reductions were offered, one of which was from NatWest.
The high street lender reintroduced some sub-4% deals and Eastell namechecked an “eye-catching” two-year fixed rate deal from NatWest, priced at 4.19% and available at 75% loan-to-value for house purchase customers, the deal charges a £995 product fee which is offset by a free valuation incentive.
The prominent brands to reduce selected fixed rates this week included NatWest by up to 0.41%, Royal Bank of Scotland by up to 0.41%, first direct by up to 0.10%, and HSBC by up to 0.05% for house purchases or up to 0.10% for remortgage customers.
Banks to increase rates included TSB by up to 0.10%, Lloyds Bank by up to 0.08%, Halifax by up to 0.08%, first direct by up to 0.10%, virgin money by up to 0.10%, Santander by up to 0.20% and HSBC by up to 0.07% for house purchases and up to 0.10% for remortgage customers.
Building societies also made a few rates move this week, those to reduce fixed rates included West Brom Building Society by up to 0.19%, and Furness Building Society by up to 0.20%. Those to increase fixed rates included West Brom Building Society by up to 0.13%, Cumberland Building Society by up to 0.15% and Leeds Building Society by 0.10%.
A few more lenders moved to reduce rates including MPowered Mortgages by up to 0.30% and Gen H by up to 0.25. Those to increase included, Clydesdale Bank by up to 0.25%, Kent Reliance by up to 0.40% and Atom Bank by up to 0.25%.
Eastell concluded: “Average rates are lower in comparison to last month despite recent hikes, so borrowers may not need to be too disheartened that some rate increases are still taking place, as it is likely repricing due to swap rates are still trickling through.
“Nevertheless, it is a promising sign that rate adjustments have been significantly more subdued, therefore allowing product choice to bounce back for the first time since July 2024, but all eyes will be on the upcoming base rate decision and Budget for both borrowers and lenders.”