Halifax is set to increase fixed rates by up to 0.20% from Wednesday 13th March, joining Santander, Co-operative Bank and other high street lenders by increasing rates on the first day of this week.
Newpage asked mortgage brokers for their reaction to this, and why the mortgage market has started this week on such a dour note.
Their views can be found below.
Reaction”
Justin Moy, managing director at EHF Mortgages:
“More disappointment in the mortgage market, with the UK’s largest lender also now increasing rates this week following others earlier in the day.
“This is a bitter blow to borrowers, especially when we are rapidly moving towards the most important time of the year for buying and selling property.
“Rates need to fall, and fall quickly, to rescue both the economy and property market.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“This week hasn’t started how we would have hoped.
“Three of the big six lenders have now announced rate increases.
“This is even worse given that many high street banks aren’t currently sourcing at the top of the list when looking for products.
“This confirms that they are not increasing prices to reduce volumes of business, so they may be anticipating that the next set of inflation data may not be as positive as we would like.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“With the UK’s largest mortgage lender piling on the misery following rate increases from Natwest, Santander and Co-op, it is going to be a busy day for brokers as they scramble to secure rates for their clients.
“These increases show that the markets do not have renewed confidence following last week’s Budget. It’s not been the best of starts to the week for borrowers.”
Dariusz Karpowicz, director at Albion Financial Advice:
“The news today is a mixed bag for mortgage hopefuls.
“Santander and NatWest’s rate hikes are certainly a setback, especially after the recent optimism around falling swap rates.
“However, those swap rates, which reflect lenders’ borrowing costs, have been dropping in the 5-year market, leading some brokers to believe mortgage rates may actually fall in the coming weeks.
“The key factor to watch is next week’s inflation figures. If they show a decrease, it could signal the Bank of England is nearing a pause, or even a cut, in interest rates.
“This would likely translate to lower mortgage rates from lenders.
“The disappointing Spring Budget, which lacked significant measures to address the UK housing market, certainly doesn’t help.
“It reinforces the idea that affordability will remain a challenge, even if rates do come down.
“So, while today’s news is discouraging, there’s still a chance for better rates in the near future.”
Ranald Mitchell, director at Charwin Private Clients:
“Yet another lender putting rates up following on from Santander, NatWest and Co-op.
“This latest round of hikes will be viewed as market exploitation by cynics, especially given underlying SWAP market rates appear to be easing down.
“This could be a smash and grab by mortgage providers before a spate of potential rate cuts.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“Are we missing something here? Swap rates are reducing yet lenders are increasing mortgage rates.
“There’s no logic to mortgage pricing right now.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Whilst this will come as a shock to many and is bad news for anyone who has had an offer accepted over the weekend and is looking to submit their mortgage application, at least we’ve been given more than 24 hours’ notice.
“However, fear not, as there’s a very high chance that these increases could be unwound in the next few weeks.
“Nevertheless, hope for the best, prepare for the worst and, for god’s sake, don’t hang about.”
Mark Robinson, managing director at Albion Forest Mortgages:
“Being a broker gets more stressful by the day.
“Within minutes of making a recommendation you are having to email the clients to let them know this is only valid for (basically) 24 hours as the lender is increasing rates after that point.
“It is making it ever more important to have a good broker that can provide this insight or potentially risk losing out on a good rate.
“In such a fast-moving rate environment, brokers prove their worth.”
Shaun Sturgess, director at Sturgess Mortgage Solutions Ltd:
“Yet another small increase from another high street lender.
“This is the start to the week that nobody wanted and is sure to have a negative impact on potential new borrowers and purchasers.
“Hopefully, Halifax are simply turning the tap off as they have dominated the top of the sourcing systems and more than likely had their fill for the time being.
“It will be interesting to see who picks up where they left off at the top of the charts.
“As a broker, it is highly frustrating having to amend your recommendations within minutes of providing them but it really does enhance our value to borrowers.”
Akhil Mair, director at Our Mortgage Broker:
“As a mortgage broker, the latest news from Halifax is deeply concerning.
“The announcement of fixed rates increasing by up to 0.2% from Wednesday evening adds to the growing list of lenders implementing higher rates, including Santander, Co-op, and others this week.
“For those in the process of applying for a new mortgage or considering refinancing their current low fixed-rate deals, this development casts a long shadow of uncertainty.
“It not only complicates financial planning but also puts pressure on individuals and families trying to secure stable and affordable housing financing.
“The ripple effect of these rate increases could potentially disrupt the mortgage market, making it more challenging for borrowers to find favourable terms and locking them into higher monthly payments.
“This news underscores the importance of staying vigilant and being proactive in monitoring mortgage rates and exploring all available options with the guidance of experienced professionals.”
Gareth Davies, director at South Coast Mortgage Services:
“Do these lenders know something we don’t or are they being greedy?
“Everything is pointing towards an improving rate climate, yet a number of the ‘big boys’ are upping their rates again already this week.
“Because one has done it, everyone else seems to follow suit. Lenders appear to be acting like lemmings.”
Ken James, director at Contractor Mortgage Services:
“Looking for positives in the mortgage market is like getting blood from a stone.
“The Market is proving tough these days. Every email we seem to receive from lenders is a rate rise.
“Whilst there is a sense that with 5-year swap rates coming down, lenders may soon follow suit, the negative start to the week does not bode well.
“They have at least given us a window of time to speak to our clients, which makes a change.”
