Average five-year deal hits 6%
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In June the average five-year deal rose by 0.43% and the average two-year deal increased by 0.41% to 5.08%.
Product numbers have fallen to 1,242, a 5% decrease from the number of residential mortgages available the previous month.
Yet the number of deals available for borrowers with a 90% LTV have gone up by 21% during June, with Britannia, Cambridge, Earl Shilton, Leek United and Saffron building societies all entering the 90% plus market.
Louis Kaszczak, head of Moneyfacts.co.uk, says: “Those that are looking for a new fixed deal need to act fast as the lenders continue to fall over each other to increase rates.
“No one seems to want to offer the lowest fixed rate deal at the moment.
“The only positive news is for those with a small deposit, where competition is slowly returning to the market.”
But Kaszczak adds: “With an average five-year fix standing at 6.79% for those with a 10% deposit, it is debatable how many borrowers will take up these deals.”
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