The cost of fixed rate mortgage rates continued to rise this week, despite the Bank of England cutting interest rates earlier this month.
Analysis of market trends this week by Moneyfacts shows that 2-year, 3-year and 5-year fixed rates across most LTV bands have all increased as swap rates remain volatile. has been done. 
The biggest increase was in the 5-year market, where interest rates rose by 0.06% (averaged across all LTV bands). Meanwhile, the average two-year bond rose 0.04%, while the average three-year bond rose only 0.01%, a smaller increase.
In the three-year fixed rate market, prices for loans up to 95% LTV fell slightly this week, down 0.02%, but were the only band bucking the general upward trend in these various categories.
Caitlin Eastel, a spokeswoman for Money Facts, said building associations were most active this week when it came to rate changes, announcing both rate cuts and rate increases, as well as product withdrawals and launches.
However, Mr Eastel pointed out that some of the UK's biggest mortgage lenders had also changed their product ranges. He said: “Notable brands increasing certain fixed interest rates this week include Virgin Money up to 0.15%, Royal Bank of Scotland up to 0.10% and NatWest up to 0.10%.” Ta.
According to Moneyfacts, many building societies have repriced their fixed ranges. The largest increases were seen by Progressive Building Society (up 0.54%), Hinckley & Rugby Building Society (up 0.44%), Saffron Building Society (up 0.40%) and Melton Building Society (up 0.40%). ) was. 0.39%), West Brom (up to 0.20%), Suffolk Building Society (up to 0.20%) and Skipton Building Society (up to 0.14%).
Eastel added: “With inflation trending higher again than expected earlier this week, expectations for a potential rate cut early next year may also be dampened. It remains to be seen when broader rate cuts will return. “It's still unclear,” he added.
But despite this more pessimistic outlook, Moneyfact noted this week that some “eye-catching deals” have surfaced in these product updates. This includes a two-year fixed rate agreement from TSB priced at 4.59% and available with an 80% loan-to-value for homebuying customers. Moneyfacst says there is a reasonable £995 product fee on this deal, but this is offset by a free review incentive.
