After three months of historically low rates in the two-year 60%, 65%, 70%, 75%, and 80% loan-to-values (LTV), the lowest rates offered by lenders have shot upwards as at the 1 July. The cheapest 90% LTV also increased from last month’s rate.

The five-year fixed rate provides little comfort either, as the cheapest rate on four out of seven LTVs also increased.

Sylvia Waycot, Editor at Moneyfacts.co.uk, said:

“These are not averages, they are the lowest rates being offered by lenders direct to borrowers for fixed rate mortgages and they are moving upwards - now.

“Anyone taking the cheapest deal today will still get the cheapest deal, but it is going to cost more than it did last month.

“Fixed rate mortgages are finely tuned to SWAP rates which are, in turn, finely tuned to base rate speculation. The continual stop/start over when BOE base rate will rise has caused SWAP rates to increase, with the end result now showing in the direct-to-borrower market.

“For the first time in a long time, the people with the biggest deposits are coming off worse as the competitive FTBs cheapest rates are the same as last month.

“Borrowers’ are literally set to pay the price of a rate rise before the BOE rate has in fact risen”.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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