A quiet couple of days, with the swap market gently backing up last week’s story.
Swaps edged lower. The GBP SONIA swaps behind fixed-rate mortgage pricing drifted down a touch: five-year swaps now sit at roughly 4.0-4.05% and the two-year just under 3.95%. The two market sources we track had disagreed for a while (one had gone stale); both are now fresh and within a few basis points of each other, which gives us more confidence in the level. The move since late May is worth perhaps 10-15 basis points on the two-year - small, but in the borrower-friendly direction.
Buy-to-let pricing held. No launches, withdrawals or repricing across the limited-company buy-to-let range we follow since our last note, and our own lender’s five-year fixed pricing at 75% loan-to-value is also unchanged. The competitive repricing we flagged on 1 July has stuck: the sharpest five-year money at that loan-to-value still prices below where our own lender’s equivalent products sit.
Our take: with swaps easing slightly rather than rising, there’s no funding pressure to unwind last week’s cuts - if anything the backdrop now mildly supports them. The gap between the best of the market and our own lender persists, so it remains worth a conversation with the broker before anything is locked in. Nothing to act on today; direction still favours patience.