During last week the upward trend in swap rates of the past month continued, making it unlikely that any lenders will price downwards unless their treasury departments are feeling brave and have deep pockets.
One-year money is up 0.07% to 4.71%
Two-year money is up 0.08% to 4.84%
Three-year money is up 0.08% to 4.92%
Five-year money is up 0.09% to 5.00%
Abbey launched a 15-year fixed rate at 5.74% but it does have one year's worth of early repayment charges.
The most imaginatively-described product this week is Co-operative Bank's 10-year fixed rate at 5.79%. It was described in the launch email as 'one for Gordon'.
As it has been such a quiet week for rates, villain of the week is Abbey for the AIP system featured on its website. When I went in to retrieve a saved AIP which I was not able to send when I keyed it in, I was somewhat disappointed to have to scroll through 30 screens of the application I had entered, clicking 'next' and waiting for the next page to load.
Abbey, I suggest you go to the Birmingham Midshires website and see why 80% of its business is submitted online.
Rate of the week continues to be Northern Rock's two-year fixed rate at 4.49% but it is a shame about the fees.
LIBOR is a good way of working out what the City expects base rate to be at within a given period and it has risen again.
Three month LIBOR has jumped 0.04% to 4.37%, meaning the City is expecting another 0.25% rise in the next three months.
Meanwhile 12-month LIBOR is up 0.08% to 4.75%, indicating a 0.75% increase in the next 12 months.
I guess the big question for this week is – will it or won't it? The Monetary Policy Committee meets on Wednesday and Thursday and whilst it is expected to keep base rate at 4%, there is a pretty strong chance it could be increased.
Jonathan Cornell is technical director Hamptons International Mortgages