Banks and building societies still increasing mortgage rates
Banks and building societies have continued to increase their mortgage rates this week, meaning many have raised rates multiple times in a very short period.
Coventry Building Society sent the first rate change email this week explaining its mortgage rates were rising by up to 0.25%. Their email was closely followed by one from Gen H, a relatively new lender, which increased raised by up to 0.37%.
Many of the biggest banks have also upped their rates. Santander put many of its fixes up by as much as 0.36%, and unfortunately, Halifax raised some remortgage deals by up to 0.63% meaning its remortgage rates are now more expensive than its property purchase deals. TSB raised some rates by 0.4%, and Clydesdale Bank also hiked some fixes by 0.66%.
Many lenders have also raised their standard variable rates following the latest increase to the base rate by the Bank of England's monetary policy committee meaning many are around eight or nine per cent.
It is quite hard to believe how many lenders are still raising their rates, but the cost of funding mortgages still seems to be increasing.
Make sure you shop around to get the best mortgage deal
Aaron Strutt, product director at Trinty Financial, says: "Many mortgage lenders are giving virtually no notice they are pulling their rates, which means applications must be submitted quickly. Mortgage rates vary considerably between lenders, and not all lenders will increase rates simultaneously or by the same amount. This means getting an application submitted to another lender before it raises its rates could save borrowers a fortune."
Trinity Financial's mortgage brokers can compare rates from different lenders to help our clients find the most suitable mortgage deal for their needs. Call our experts on 020 7016 0790 or book a consultation.
Average mortgage rates across the big six lenders*:
|
|
Rates (27th June) |
Rates (4th July) |
% change from last week |
|
Two-year fixed-rate mortgage (75% LTV) |
5.61% |
5.94% |
+0.33% |
|
Five-year fixed-rate mortgage rate (75% LTV) |
5.24% |
5.44% |
+0.2% |
|
Two-year variable-rate mortgage rate (75% LTV) |
5.49% |
5.52% |
+0.03% |
|
Two-year fixed-rate mortgage (90% LTV) |
5.84% |
6.09% |
+0.25% |
|
Standard variable rate (SVR) |
7.49% |
7.49% |
- |
*Nationwide, Santander, HSBC, Halifax, Barclays Bank, NatWest, and Lloyds Bank. Data provided by Uswitch.
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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