Four of the UK’s biggest mortgage lenders upped their residential prices yet again today, in the latest sign of mortgage mayhem.
Halifax, HSBC and TSB have all upped their rates with effect from today, while Nationwide will bring in higher rates from tomorrow, as lenders adjust to the Bank of England’s latest 50-basis-point rate hike and the further interest rate increases that appear certain to come.
Halifax, the UK’s biggest mortgage lender, upped its fixed rates for both direct and broker deals by 0.3 percentage points. That brings its rate for a five-year fixed-rate mortgage at 75% loan-to-value to 5.39%.
TSB upped its rates by up to 0.35 percentage points, pricing its two-year fixed-rate 90% deal at 6.54%.
HSBC had the most drastic hike, increasing its rates by up to 0.55 percentage points, as its two-year 90% value rate rose to 5.84%.
Nationwide announced its decision later, revealing that it would be increasing fixed rates by up to 0.35% from tomorrow.
Other lenders increasing interest rates include First Direct, Aldermore and Pepper Money.
Data from Moneyfacts released this morning showed an average two-year fixed residential mortgage is now 6.30%, up from 6.26% a day earlier, while the average five-year fix has risen to 5.91%.
But the number of products on the market had decreased again to just 4,407, as lenders continued to pull deals as volatility goes on.
Mortgage rates have skyrocketed in the past five weeks, as inflation proves ‘stickier’ than expected, which has led to expectations of more interest rate hikes from the Bank of England. Markets currently expect rates to peak at 6.25%, which would be the highest rate this century.
