HSBC, NatWest and Virgin Money changing interest rates
Interest rates for new fixed-rate mortgages are set to increase as HSBC, NatWest, and Virgin Money adjust their offerings.
This marks a shift from earlier in the year when lenders were cutting rates, benefiting those looking to remortgage.
Rising funding costs for lenders have recently prompted rate hikes, signaling an end to the sub-4% five-year fixed deals once common.
The shift in rates comes amidst mixed expectations about the Bank of England's monetary policy, which, if it involves lower rates, would make borrowing cheaper. Around 1.6 million borrowers currently benefitting from low-rate fixed deals will need to seek new mortgages this year as their terms expire.
Earlier, Santander, Coventry Building Society, and TSB had already increased their rates. While rates are rising, they remain competitive, with two-year and five-year fixed rates hovering around 4.4% and 4.2%, respectively. The property market, which has seen increased activity, may feel the impact of these rate increases.
Many feel the rate hikes and short notice from lenders echo the tumultuous mortgage climate of 2023, complicating the mortgage search and affordability for potential homeowners.
Despite this, Halifax is set to lower some of its rates, suggesting that lenders are still adjusting to find the right balance in a competitive market.
Rising funding costs for lenders have recently prompted rate hikes, signaling an end to the sub-4% five-year fixed deals once common.
The shift in rates comes amidst mixed expectations about the Bank of England's monetary policy, which, if it involves lower rates, would make borrowing cheaper. Around 1.6 million borrowers currently benefitting from low-rate fixed deals will need to seek new mortgages this year as their terms expire.
Earlier, Santander, Coventry Building Society, and TSB had already increased their rates. While rates are rising, they remain competitive, with two-year and five-year fixed rates hovering around 4.4% and 4.2%, respectively. The property market, which has seen increased activity, may feel the impact of these rate increases.
Many feel the rate hikes and short notice from lenders echo the tumultuous mortgage climate of 2023, complicating the mortgage search and affordability for potential homeowners.
Despite this, Halifax is set to lower some of its rates, suggesting that lenders are still adjusting to find the right balance in a competitive market.
