Swap rates fell slightly last week but not enough to affect any lender rate decisions.
One-year money is down 0.04% to 4.75%
Two-year money is down 0.05% to 4.94%
Three-year money is down 0.02% to 5.06%
Five-year money is down 0.02% to 5.17%
Last week's raft of fixed rate increases had been expected – Halifax, Cheltenham & Gloucester, West Brom, The Woolwich, Bank of Ireland and Nationwide all repriced.
At times like this you appreciate lenders that use emails for rate updates – it makes it easier to stay on top of rates, it's possible to instantly distribute rates to colleagues wherever they are and it's easier to store the information. C&G please take note.
The Woolwich launched a guaranteed lifetime tracker rate this week at base plus 0.04% for two years then 0.95% for the life of the loan but it does not look like good value long-term compared with Bank of Scotland which has a rate of base plus 0.69% for life.
Northern Rock wins rate of the week with its two-year fix at 4.69% though fees are painfully high. Once again it is villain of the week, this time for launching a rate then pulling it a few days later.
Three-month LIBOR is up 0.01% at 4.38% and the City is expecting another 0.25% rise in the base rate in the next three months. Twelve-month LIBOR is down 0.03% at 4.79, indicating a 0.75% increase in the next 12 months.
The minutes have been released for April's Monetary Policy Committee meeting and show that there was an eight to one decision to hold rates.
March's inflation figure unexpectedly fell from 1.3% to 1.1%. In theory this should ease the pressure to increase the base rate as the target is 2%. But in reality the effects of house price inflation, consumer debt and expenditure on future inflation concern the MPC.
Jonathan Cornell is technical director Hamptons International Mortgages