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Market Watch

• One-year money is down 0.10% to 5.14%

• Two-year money is down 0.10% to 5.15%

• Three-year money is down 0.09% at 5.20%

• Five-year money is down 0.06% to 5.27%

Refreshingly, most lenders seem to be increasing their SVRs by just 0.25% in line with the base rate increase. RBS has brought down its two-year fixed to 5.54% and its five-year fixed to 5.79% which both seem quite high compared with their peers.

Rate of the week is C&G&#39s 4.99% two-year fixed rate. While it has a minimum loan size of £100,000 it is available to 80% (75% buy-to-let). It is fantastic value, especially for remortgages. After NatWest and RBS pulled away from fast-track in the past weeks it&#39s good to see a lender committing to self-cert. TMW has increased its self-cert maximum LTV to 85%. Though it calls it self-cert, as there is no income declaration it&#39s really non-status.

It has also changed its buy-to-let rental calculation to 125% of the interest payment at 5.99% at 80% LTV, which should make it easier to get high LTVs. Villain of the week is all lenders who email or write to you simply enclosing their &#39new rates&#39. To find out which have changed (if any) you have to go through all the old rates, comparing them with the new. Life would be so much easier if they could simply tell us which rates have changed, as well as supplying the new rate portfolio.

Abbey&#39s current pricing seems to be competitive and if it carries on like this it will have a healthy pipeline going into regulation. Given the processing challenges N4 will bring, it will be interesting to see how both its product pricing and service levels will be maintained into November and December. From November 1 A&L will no longer accept paper applications from the broker market, apart from cases too complicated for its online system to cope with.

It&#39s a bold decision but online is the future and the quicker brokers accept it the better. Lets hope other lenders follow suit.

Over in the City three-month LIBOR is down to 4.95% so the City is expecting a 0.25% increase in the next three months and 12-month LIBOR is down to 5.16% indicating a 0.50% increase in the next 12 months.

Meanwhile the barrage of conflicting house price information shows no sign of abating.

Now Nationwide says house prices rose by just 0.1% in August, the slowest monthly increase for almost three years. The annual rate of house price inflation fell to 18.9% in August from 20.3% the month before and they claim the average UK property now costs £153,743.

And according to Bank of England figures, consumers took out fewer loans, credit cards and mortgages in July than they did in June. Whilst the rate of increase has slowed, UK consumers still owe a total of £1.014trillion.

Jonathan Cornell is technical director at Hamptons International Mortgages


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