Mortgage lenders increasing the cost of borrowing

by Aaron Strutt

Feb 22 2022

Banks and building societies have been increasing the cost of their fixed-rate mortgages particularly over the last week. 

Santander for Intermediaries has raised the price of its two-year fixes by up to 0.5% and its five-year fixes by up to 0.45%. Halifax for Intermediaries has increased a selection of its fixed rates by 0.12%, while Scottish Widows has hiked some of its five-year fix remortgage rates by 0.45%.

Virgin Money has increased rates by 0.30%, while Yorkshire Building Society has made increases by up to 0.63%. Platform for Intermediaries has also raised some of its two-year rates by 0.45% and five-year fixes by 0.38%. 

Aaron Strutt, product director at Trinity Financial, says: "If you are in the process of applying for a mortgage, it is worth getting your applications in because rates are rising at the moment. 

"Since the Bank of England (BoE) base rate increased there has been talk of further rises, and the lenders may well be pricing in another interest rate change. At February's meeting, four of the BoE's nine policymakers voted for a 50 basis-point increase while the majority backed a 25 basis-point rise to 0.5%."

Base rate rises coming according to Reuters poll  

Nearly two-thirds of respondents to a Reuters poll from February 7 and February 11, found 25 of 40 economists expected a 25 basis points increase in Bank Rate to 0.75% after the next MPC meeting on March 17. That would mark the first time the Bank has raised rates at three meetings in a row since 1997. A slim majority, 21 of 41, forecast a further increase to 1.00% next quarter.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation  

Source: Mortgage lender rate updates, Moneyfacts and Reuters.com survey by Swathi Nair