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Yorkshire is also offering a five-year fix at 3.92percent for home purchase customers (also at 75percent LTV and with a 1,495 fee), and a fee-free two-year fix (85percent LTV) at 5.12percent, down from 5.62percent. Homeowners keen to avoid paying SVR and pay less for their mortgage can look for a new home loan deal well in advance of their existing fixed or tracker deal coming to an end. SVR mortgage rates fluctuate according to movements in the prevailing rate of interest, with recent increases attributed to the rise in the Bank Rate (from 4percent to 4.25percent) last month. However, because lenders can set their SVR at their preferred level, changes are not always exactly in line with changes to Bank Rate.

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The deals are available through brokers or directly from the lender. Applicants have a full six months to complete the deal from the point of offer. First Direct deals either carry no booking fee or a fee capped at 490. Earlier this week Halifax, the UK’s largest mortgage lender, kicked off the first of the New Year’s rate reductions, continuing a market trend from 2023 .

HSBC has increased its most popular fixed rate mortgage deals by as much as 0.6 percentage points. The bank had already increased rates by up to 0.8 percentage points on 28 June. Santander has increased selected fixed rates for new customers by up to 0.3 percentage points. It is the bank’s third rate increase in as many weeks, having increased fixed rates on 26 June and 5 July, writes Jo Thornhill.