Major UK banks are putting up mortgage rates – including HSBC, NatWest and Barclays. NatWest, Accord, HSBC, The Co-Operative Bank and Barclays have all announced they will be upping their rates for customers over the coming days.
Pete Mugleston, managing director at OnlineMortgageAdvisor.co.uk said: “This is a concerning move whilst the economy is in such a fragile state. What the housing market really needs is a show of faith by lenders especially to try and support the Bank of England.
“Keeping mortgage rates at a lower level could have really kickstarted the first-time buying market which, as we know, then has a greater positive impact further up the chain. The uncertainty that we’re experiencing highlights the significance of consumers needing to secure a rate as soon as possible, as this could potentially save them a large amount of money in their mortgage journey.”
READ MORE UK braced for first ‘official’ heatwave of year with temperatures in ‘high 20s’
NatWest is also increasing rates on several of its two and five year switched deals by 0.1 percentage points. The Co-Operative Bank is increasing some deals by 0.38 percentage points. Stephen Perkins, managing director at Yellow Brick Mortgage, said: “A swirling hurricane of rate rises is shaking the mortgage market this morning, in a disastrous start to the new week.
“With swap rates having increased in recent days from the lack of expectation of any base rate reduction anytime soon, the “higher for longer rhetoric” is biting hard.” Lewis Shaw, owner and mortgage expert at Shaw Financial Services, added: “With fixed rates on the march upwards again, we could easily see the property market get quiet right when it’s meant to be in full swing.
“So far this whole higher-for-longer narrative is coming true much to the dismay of those who want to move and can’t find a buyer and buyers who want to purchase but can negotiate the price down to something affordable. It’s all fun and games.”
