Not surprisingly given the activity in the mortgage market in recent days, Rightmove’s weekly mortgage tracker shows a noticeable increase in average rates for the week to June 6.

For an 85% LTV five year fixed rate mortgage the average rate is up to 5.02% from 4.55% last week,

There is an increased average rate for 65% LTV five-year fixed products – from 4.38% to 4.68%.

For a 90% LTV two-year fix, the average rate has increased from 5.11% to 5.51% and for a five-year fix from 4.76% to 5.22%.

The average monthly mortgage payment on a first-time buyer type property for someone taking out a five-year fixed, 85% LTV mortgage is now £1,127, up by £52 per month compared to last week.

The average monthly mortgage payment on a first-time buyer type property for someone taking out a five-year fixed, 60% LTV mortgage is now £769, up by £23 per month compared to last week

The average asking price for a first-time buyer type property (2 bedrooms and fewer properties) is now £226,399.

Rightmove’s mortgage expert Matt Smith says: “We’re now seeing the full impact of the recent inflation numbers coming through, with rates increasing by an average of 0.39% across all LTVs and those with a 10% or 15% deposit hardest hit by these latest rate changes.

“This is a much higher increase than we’ve seen in recent weeks and reflects the uncertainty amongst lenders right now. One factor to keep in mind for those taking out a mortgage soon is that the minimum available rates for each loan size are considerably lower than the average rate, as some lenders try to remain as competitive they can”.

Smith adds: “This is the first week that we’ve seen average rates of 5% or more in all LTV brackets since early January. We’ve now seen the majority of lenders change their rates after an initially slow response to the inflation figures, and it’s likely lenders will assess the impact of these changes before making further moves.”

The post Rightmove weekly tracker shows rising rates appeared first on Mortgage Strategy.