The rough costs to a lender of buying a tranche of money to lend as a fixed rate – known as swap rates – continued to rise last week.
One-year money is unchanged at 4.79%
Two-year money is up 0.03% to 4.99%
Three-year money is up 0.03% to 5.08%
Five-year money is up 0.06% to 5.18%
As lenders' tranches have run dry, last week saw a flurry of rate pulls and increases.
Northern Rock has announced the withdrawal of its two-year fixed rate at 4.49%.
Other lenders to reprice include Co-Operative Bank which increased the cost if its two-year discount, and Bristol & West which repriced its fixed and discount rates with applications needing to be in this Friday. B&W is also pulling its long-standing three-year fixed at 4.65% which has been an exclusive of several brokers.
The Mortgage Works has increased its excellent buy-to-let fixed rates with the new two-year rate at 5.19% still good value.
Other repricers were Lambeth, GMAC-RFC, Bank of Ireland and West Brom. All in all a frantic week.
Villain of the week is Cheltenham & Gloucester for its new credit scoring system. Understandably it requires several proofs of address if a client is not on the voters' roll but now if the property is registered even slightly different on the roll it will still ask for the additional proofs. Let's hope its credit risk department gets its act together soon.
Three-month LIBOR is down 0.03% at 4.37%. As the current base rate is 4%, the City is expecting another 0.25% in the next three months. Twelve-month LIBOR is unchanged at 4.82% indicating a 0.75% increase in the next 12 months.
With figures showing credit card debt being racked up faster than ever, the Bank of England will meet on May 5 and 6 and it is looking more and more certain it will increase the base rate next month.
Jonathan Cornell is technical director Hamptons International Mortgages