Both Halifax and BM Solutions are set to introduce rate increases of up to 0.2% for a variety of deals, effective from tomorrow, Friday 26th April.
These rate increases include products for first-time buyers, homemovers, remortgages and product transfers, and as well as the same for landlord borrowers.
Newspage asked mortgage brokers for their views on these increases.
Reaction:
Justin Moy, managing director at EHF Mortgages:
“Yet more bad news for mortgage borrowers, as two of the biggest lenders announce increases to their fixed rate products.
“As mortgage rates creep up and past 5% even for those with the largest deposits, we seem to be lacking a clear strategy of the Government or the Bank of England on how rates will eventually fall.
“Even 2% inflation may not be enough to reverse the recent trends in rates, instead, we meander to a general election that won’t cure the problem either.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“An interesting day for Lloyds Banking group, to announce a drop in profits blaming tighter margins on mortgage lending and then within hours increasing their mortgage rates.
“Further misery for borrowers until such time as the Bank of England takes action on the base rate.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“Another one bites the dust. With Halifax, the biggest mortgage lender in the UK, now increasing rates, we could easily see more follow suit.
“On top of that, with swap rates increasing, this trend looks set to continue.
“The spring property bounce that should now be in full swing could easily become a damp squib and morph into a summer of discontent.”
Gary Bush, financial adviser at MortgageShop.com:
“Halifax increasing its fixed rates following the pack of lenders from yesterday adds a further nail in the coffin of households.
“Spooked financial markets are causing chaos for the property market and some calm needs to return, and fast.”
Darryl Dhoffer, adviser at The Mortgage Expert:
“When the big ship Halifax increases mortgage rates, smaller lender boats will follow. Hoping the tide will turn, but the outlook is looking bleak currently.
“Borrowers need stability and we have had nothing but instability for the past 16 months.”
Harps Garcha, director at Brooklyns Financial:
“Disheartening for many homeowners, but it wasn’t entirely unexpected given recent events such as the increase in swap rates.
“For those whose fixed-rate mortgages are set to expire in the next five to six months, it’s essential to seek advice and act decisively.
“The current fluctuating mortgage landscape has become increasingly unpredictable.”
Ben Perks, managing director at Orchard Financial Advisers:
“Strangely, compared to some of the increases we’ve seen this week a 0.2% increase demonstrates a willingness to lend.
“The last few days have been pretty grim as we’ve witnessed rate increases sweeping across the market.
“Halifax and BM Solutions are the latest to announce rises and whilst these ones are modest, I think we will see further increases in the coming weeks from them and others.
“With rates continuing to creep up, the Bank of England must start considering a reduction.
“This choke-hold on base rate is suffocating the industry and borrowers are paying the price.”
Elliott Culley, director at Switch Mortgage Finance:
“Rate rises have become the new normal.
“The early spring shoots of a housing recovery have been flattened by the continuous volatility seen in the economy.
“Borrowers need to remain vigilant and act decisively to secure the best rates available.”
