Ahead of a potential Bank of England base rate cut by the Monetary Policy Committee (MPC) on 6 February, rates among major lenders have moved around.
This month, mortgage rates have risen by an average of 8%, according to research from broker Alexander Hall.
As it stands, the average two-year fixed residential mortgage rate is 5.52%, while the average for the same term in the buy-to-let (BTL) market is 5.4%.
The two lenders to increase their rates for borrowers this week were NatWest and Nationwide.
NatWest ups rates
NatWest increased a select range of new business rates, including residential, first-time buyer and green mortgage deals, by up to 0.11%.
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Within its purchase range, there will be rate increases of up to 0.8% and 0.11% on select two- and five-year deals.
An example is its five-year fixed purchase rate at 95% loan to value (LTV) with no fee, which has risen from 5.19% to 5.3%.
High-value purchase deals will rise by 0.4-0.6%, meaning a two-year fixed rate with a £995 fee at 85% LTV is priced at 4.85%.
On the first-time buyer side, select two- and five-year deals rose by around 0.1-0.6%. For instance, its five-year fixed rate purchase deal at 90% LTV with a £995 fee and £250 cashback is 4.8%.
The lender’s two-year fixed rate green mortgage deal at 85% LTV rose from 4.64% to 4.7%. It has a product fee of £995.
Nationwide’s first move of 2025
Meanwhile, high street lender Nationwide made its first changes to rates this year by increasing mortgage rates across its new business and existing business ranges.
Within its new business range, mortgage rates for new members moving on two-, three- and five-year terms have gone up, with prices starting from 4.28%, 4.24% and 4.14% respectively. This is also the same for existing members moving.
On the first-time buyer side, rates begin from 4.41% for a two-year deal, 4.34% for a three-year deal and 4.29% for a five-year deal.
For new members moving, two- and five-year deals with a £999 fee and no fee from 60% LTV to 80% LTV have risen. Two-year deals start from 4.51% and five-year deals begin from 4.39%.
Remortgage products on two-, three- and five-year terms have increased, starting from 4.39%, 4.34% and 4.19% respectively.
Santander slashes new business and product transfer rates
Santander lowered most new business and product transfer fixed rates by up to 0.28%, while a small number will rise by up to 0.12%.
The lender added it was temporarily withdrawing its green remortgage range for residential and BTL customers.
Within its new business range, two-year residential purchase deals at 60%, 75%, 90% and 95% LTV along with five-year fixed rates at 75%, 85%, 90% and 95% LTV dropped by up to 0.28%.
The lender’s two-year fixed rate at 85% with no fee decreased by 0.01%.
Most of its residential remortgage deals on two- and five-year terms will contract by around 0.1% and 10-year fixed rates at 75% LTV decreased by the same amount.
Santander’s three-year fixed new-build purchase rate at 90% LTV fell by up to 0.25%.
Two-year fixed residential large loan purchase and remortgage rates at 60% LTV with a £1,999 fee decreased by up to 0.06%.
On the BTL side, two-year fixed purchase rates at 60% and 75% LTV dipped by up to 0.16% and five-year remortgage products at 60% LTV will fall by up to 0.02%.
Santander will increase its two-year residential purchase rate at 85% LTV and its five-year fixed rate, both with a £999 fee, by 0.02%.
Five-year BTL purchase products at 60% and 75% LTV shifted up by 0.06% and two- and five-year BTL remortgage deals at 75% LTV rose by up to 0.11%.
TSB’s rate reductions
TSB brought back its two-year fixed first-time buyer and homemover deal at 90-95% LTV, and the firm also lowered select residential and BTL rates.
The lender is lowering two-year fixed first-time buyer and homemover deals up to 75% LTV and 80-85% LTV by up to 0.1%.
Within its BTL range, two-year fixed house purchase rates will fall by around 0.1% and two-year fixed remortgage deals up to 75% LTV also fell.
This article was based on mortgage rate updates on YourMoney.com‘s sister site, Mortgage Solutions.
