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Data from Moneyfacts shows that all average rates have declined this week, despite the Bank of England raising its base rate by 25 basis points to 4.25%.
This Friday, the average two-year correction rate fell 5 basis points to 5.29%, while the three-year average correction rate fell 7 basis points to 5.13%.
Among the longer terms, the average five-year fixed-term rate was 4 basis points lower, to 4.94%, and the average 10-year fixed-term rate was 3 basis points lower, to 5%.
Corrections in two years
At 65% LTV, the average rate fell 48 basis points to 5.34%, and at 60% LTV, the average rate fell 7 basis points to 5%.
But at 95% LTV, the average rate rose 3 basis points to 5.93%, and at 70% LTV, the average rate rose 14 basis points to 5.52%.
Corrections for three years
Here, at 65% LTV, the average rate fell 18 basis points to 5.40%, but the average rate at 95% LTV rose 9 basis points to 5.72%.
At 90% LTV, the average rate fell 1 basis point to 5.32%, and at 80% LTV, the average rate fell 13 basis points to 5.13%.
Five year fixes
Here, at 65% LTV, the average rate fell 41 basis points to 5.31%, but at 50% LTV, the average rate rose 19 basis points to 5.47%.
At 95% LTV, the average rate fell 1 basis point to 5.30%, and at 90% LTV, the average rate fell 2 basis points to 5.01%.
fixes for 10 years
Little has changed over this period, with the 75% average LTV rate and 60% average LTV rate falling 3 basis points to 4.62% and 5.05%, respectively.
The average 85% LTV rate fell 2 basis points to 5.09%.
Moneyfactscompare.co.uk financial expert Rachel Springall says: “The mortgage market has shown mixed signs of higher and lower rates this week, but there have been several notable cuts in fixed mortgage rates.
“As you might expect based on yesterday’s base rate hike, some tracking transactions have risen in line with the Bank’s base rate and we may well see further increases in the variable rate in the coming weeks. The average standard variable rate at the beginning of March of 7.12%, according to our data, has already reached its highest level since 2008.
“Lenders that cut rates significantly for selected flat rates this week included a nationwide cut to 45 basis points, the Post Office to 64 basis points, Yorkshire and Clydesdale Bank to 75 basis points.
“Some of the biggest banking groups have also cut this week, including Lloyds Bank cutting individual fixed rates to 39 basis points, Santander to 28 basis points, first direct to 30 basis points, NatWest and RBS to 12 basis points.
“Overall, the mortgage market is seeing positive momentum as lenders compete on price, and we may well see further declines next week in fixed-rate deals.”
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