HSBC, Barclays, NatWest, Virgin Among Lenders Increasing Rates – Forbes Advisor

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23 April: Market Responds To Inflation Rate News

HSBC, Barclays, NatWest, Leeds building society and Accord, part of Yorkshire building society, are increasing selected fixed mortgage rates in response to rising borrowing costs.

Swap rates – the rates at which banks and building societies lend to each other – increased at the end of last week in response to the latest inflation figures. 

The official inflation rate fell to 3.2% (from 3.4%) in March, but this was a smaller reduction than expected. It is likely to mean interest rates will remain higher for longer, with a rate cut by the Bank of England now more likely in the autumn rather than June, as had been hoped.

HSBC is increasing fixed rates on a range of residential and buy-to-let mortgage deals, and on its product switcher deals for existing customers looking for a new rate. 

It is now offering two-year fixed rates for remortgage from 4.88% (previously 4.68%) with a £999 fee (60% LTV) and equivalent five-year rates from 4.48% (4.33%).

Among the rate rises are two, three and five-year purchase and first-time buyer deals from 60% to 90% loan to value (LTV) and residential remortgage rates from 60% to 75% LTV.

For home purchase, HSBC has two-year rates from 4.83% (4.68%) with a £999 fee and five-year rates from 4.48% (4.24%), also with a £999 fee (both deals are at 60% LTV).

Barclays is increasing selected fixed rates for residential purchase and remortgage, effective from tomorrow. The lender’s rate rises include an increase in its five-year fixed rate for remortgage from 4.67% to 4.77% (at 60% LTV with a £999 fee).

Two-year equivalent remortgage rates will rise from 4.84% to 4.94%.

NatWest has increased its two and five-year fixed-rate product switcher deals by up to 0.1 percentage points. The new rates, effective tomorrow, will start from 4.99% over two years with a £495 fee, or from 4.49% over five-years with a £995 fee (both deals are at 60% LTV).

Leeds building society is increasing selected residential fixed rates, including interest-only mortgage deals, by up to 0.2 percentage points, also effective from tomorrow.

Accord has raised the cost of selected residential fixed rates by up to 0.4 percentage points, effective from tomorrow. 

Rates will rise for new borrowers looking for deals at 75% to 95% LTV. Accord is currently offering two-year fixed rates from 5.06% and five-year rates from 4.74% (both 75% LTV with a £1,995 fee). These rates are likely to be higher from tomorrow. 

Virgin Money is increasing selected fixed rates for new and existing customers (product transfer deals) by up to 0.1 percentage points, effective from tomorrow (24 April).

The lender’s Fix & Switch fee-saver deal for home purchase, for borrowers with a 10% cash deposit (90% LTV), has been increased by 0.05% to 5.52%. The five-year fixed rate for its Green New Build homes rises by the same amount to start from 4.44% (60% LTV).

Product transfer deals are set to rise by 0.1 percentage points, with five-year fixed rates now starting from 4.38% (60% LTV).

Nick Mendes at broker John Charcol said: “This move from HSBC leaves Nationwide building society and NatWest leading from the front with their rates for purchase and remortgage deals for new borrowers (NatWest has increased product switcher rates for existing customers). This will inevitably mean their service levels will come under pressure which is likely to lead to these lenders also making similar moves by increasing rates over the coming days.”

17 April: Market Adjusts As Rate Cut Date Remains Uncertain

Virgin Money has made changes to selected fixed rates, through brokers, for residential and buy-to-let borrowers, reducing some deals while increasing the cost of others, writes Jo Thornhill.

Deals in the lender’s Fix and Switch product range (five-year fixed rate deals with an option to switch deal penalty-free after two years) for residential home purchase have been pushed up by 0.1 percentage points with rates now starting from 5.18% (60% loan to value), while Fix and Switch remortgage deals have risen by 0.05 percentage points and now start at…