Interest rates on fixed rate mortgages rose marginally last week according to data collected by Moneyfacts.
The average two-year fix, at 2.48%, is currently still lower (just ) than a year ago: by 0.03%.
Average rates for 60% LTV two-year fixed mortgages have increased this week from 1.90% to 1.91%, and for 65% LTV from 2.00% to 2.02%.
Rates in the 70% LTV bracket have risen from 2.54% to 2.55%, and for 75% from 2.32% to 2.34%.
In the 80s LTV bracket, rates for 80% LTV mortgages increased from 2.44% to 2.45%, and for 85% from 2.45% to 2.46%.
At the highest LTVs, described by Moneyfacts as the “extremely competitive” market sector, rates for 90% LTV remain unchanged at 2.63%, and for 95% LTV the rate has fallen, from 3.26% to 3.25%.
These are “incremental rate increases” says James Caldwell, Director of Fair Investment Company, which add up to only a small increase on most people’s monthly mortgage payments.
“But of course what everyone will be concerned about is whether they signal larger rate increases to come later this year.
“From all we can see,” says Caldwell, “even with continuing Brexit uncertainty the markets don’t expect to see significant increases this year – with inflation still comfortably below the Bank of England’s target of 2%.”