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• The equivalent five-year fixed rates for borrowers with a 25percent deposit or 10percent deposit are now priced at 4.14percent (down from 4.24percent) and 4.64percent (down from 4.84percent) respectively.
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Last month Skipton did not pass on any of the May interest rate rise to its mortgage variable rate customers. It is the rate borrowers revert to after a fixed rate or tracker deal ends if they do not switch to a new fix or tracker deal. Lenders are expected to react in the coming days to the Bank of England’s latest rate rise by increasing the cost of their mortgage deals and standard variable rates. But some early movers are showing restraint in welcome news for borrowers, writes Jo Thornhill. The cost of borrowing has soared in recent weeks as lenders have pushed up their fixed mortgage rates in anticipation of higher interest rates.

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HSBC is also offering a five-year fixed rate for home purchase (at 60percent LTV) from 4.24percent, which is within touching distance of the best purchase rates in the market. The lowest five-year purchase fixed rate is on offer from Barclays at 4.17percent with an 899 fee (60percent LTV). Among the standout deals in its latest round of repricing is a two-year fixed rate for remortgage at 4.68percent with a 999 fee. Two-year fixed rate deals for home purchase with a 995 fee up to 85percent LTV have also been increased by up to 0.15percent.

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