HSBC and NatWest are the Latest Lenders to Increase Rates Among Others

HSBC are the latest lender to announce changes to their rates starting on the 23rd of February. These changes see an increase in rates across both residential and buy-to-let product ranges. 

Which means the last of the sub-4% fixed rate disappears from the market for now to new customers, however some lenders may still be offering this to existing customers.

This announcement has come just days after Santander announced rate increases, also removing sub-4% products. This week has additionally seen rate hikes from Coventry and TSB. Virgin Money announced their increases, giving brokers four hours’ notice to submit any outstanding applications before the new increased rates come into play.

This is showing a trend of lenders increasing rates due to increased costs in funding cutting their margins. We have also seen an increase in SONIA swap rates over the last month which has an impact on fixed rates offered by lenders.

Sonia Swap Rates:

Source: Chatham Financial

Key changes to lenders’ rates:

• Santander:
  Purchases – Increasing all fixed rates by 0.23% to 0.34%
  Buy-to-let Purchases – Increasing all fixed rates by 0.23% to 0.33%
  Existing Customers – Increasing selected fixed rates by 0.05% to 0.20%
  
  
• NatWest:
  Purchases and Remortgages – Increasing selected fixed rates by up to 0.15%
  Existing Customers – Increasing selected fixed rates by up to 0.20%
  
  
• TSB:
  Purchases – Increasing two and five year fixed rates by up to 0.30% 
  Remortgages – Increasing two and five year fixed rates by up to 0.20% and 0.30% respectively
  
  
• Virgin Money:  Increasing all rates by 0.10% for both new and existing customers
  
  
• Kensington Mortgages: Withdrawing selected residential and buy to let rates
  
  
• Leeds Building Society: Withdrawing fixed rates for both new and existing customers
  
  
• West Bromwich: Revising their fixed rates, however reducing fixed rates on Shared Ownership

Harps Garcha, director at Brooklyns Financial, comments to the Intermediary, “Another disappointing turn of events, however based on what has been happening over the last few weeks it’s no surprise.  The question is, is this a temporary measure or did lenders get over-excited with their January sales? For those planning to secure a new rate soon, it's crucial to act promptly. While there's hope for rate reductions, recent events suggest otherwise. Waiting for a better deal could prove costly.”

Speak to one of our experienced mortgage consultants who can help navigate this uncertainty and find the best deal for you. Contact our team or call 01628 564631 to book a free consultation.

The information contained within was correct at the time of publication but is subject to change.

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