Principality's new range launches Tuesday
Principality's revised products will be available at 9 a.m. on Tuesday, October 27, 2026. Its current mortgage range is scheduled to be withdrawn at 5 p.m. on Monday, October 26, The Intermediary reported.
The biggest increase, at 20 basis points, is for the two-year Help to Buy Wales fix at a 75% loan-to-value ratio (LTV). Among residential mortgages, selected two-year fixes at 65%, 75%, 80% and 85% LTV will rise by as much as 15 basis points. At 90% LTV, two- and three-year fixes face increases of up to 14 basis points; selected five-year fixes will rise by up to 10 basis points. These adjustments also cover the lender's CIS six-month and one-year self-employed products.
For mortgages with cashback, the increases are up to 15 basis points on selected two-year fixes and up to 6 basis points on selected five-year fixes. Joint Borrower Sole Proprietor rates will rise by as much as 15 basis points.
The buy-to-let changes affect selected five-year fixes: increases will reach 15 basis points at 60% LTV and 10 basis points at 75% LTV. Selected Holiday Let rates will rise by 10 basis points.
One Holiday Let mortgage will become cheaper rather than more expensive. Principality will lower the rate on its five-year fix at 65% LTV, carrying a £1,395 fee, by 2 basis points.
Clydesdale raises transfer rates; Coventry cuts across ranges
Tuesday's Clydesdale changes apply to selected Core Residential product transfers with two- and five-year fixed terms. Those rates will rise by up to 19 basis points. UK Finance expects product transfers to grow by 13% in 2026, according to HomeOwners Alliance.
Coventry for intermediaries will reduce every fixed rate in its residential, buy-to-let and limited company buy-to-let ranges on Wednesday. It has not specified the reductions. The move follows increases of up to 0.13 percentage points on selected Coventry fixes since late September 2026, as reported by HomeOwners Alliance.
Other lenders have also taken different directions. HSBC and NatWest cut selected fixed rates from October 15, 2026, while Barclays increased its two-year fix to 5.05% from 4.75% and its five-year fix to 5.03% from 4.93%, according to HomeOwners Alliance.
Swap rates and mortgage averages have risen
Sterling swap rates, which drive fixed-rate mortgage pricing, rose sharply between late February and October 8, 2026, according to Mortgage Affordability. Over that period, the five-year swap rate increased from about 3.5% to 4.7%, and the two-year rate climbed from about 3.3% to 4.6%.
Moneyfacts data put the average UK five-year fixed mortgage rate at 6.00% on October 5, 2026, a level last seen in September 2023. The average two-year fix reached 5.98%.
The Bank of England's base rate, meanwhile, has remained at 3.75% since December 2025. The Monetary Policy Committee voted 6-3 to leave it unchanged on September 17, 2026; the three dissenting members favored an increase to 4%. Its next rate decision is scheduled for November 5, 2026.
