City AM - If you can’t afford your mortgage: What the FCA’s lender guidance means for borrowers

by Aaron Strutt

Mar 10 2023

Mortgage rates have come down over the last few months but they are starting to creep up again, for those that can afford it, a fixed-rate will still be more expensive but may offer some security.

Aaron Strutt of Trinity Financial told City AM: “The sub-4 per cent rates are disappearing fast. Nationwide increased its cheapest rates and Platform pulled the lowest five-year fix at 3.75 per cent within a few days. Other big lenders including HSBC have also raised rates.

“The new benchmark for the best buy mortgages is around 4.25 per cent and with another Bank of England base rate hike expected, any rate around this price seems relatively good value for money.

"The mortgage market is recovering from Liz Truss’s tax give away and there are more rates available, but they are much higher. More borrowers will be calling their lenders to ask for help when their repayments rise. 

“More of our clients are taking two-year fixes because it is likely rates will come down once inflation is under control. It is really important borrowers make sure they avoid automatically reverting onto their lender's standard variable rates as many of them are shockingly high at 7.5per cent. In fact, Halifax’s SVR is 7.49 per cent as is Nationwide’s and HSBC’s is 6.99 per cent.”