Principality Building Society increases selected mortgage rates

From tomorrow, Thursday 18th April, Principality Building Society will be making changes to its mortgage acquisition product range.

The society will be introducing a number of rate increases across selected residential products, including its 2- and 5-year 75% loan-to-value products, which will be increased by up to 0.20% and its 2-year 80% LTV products, which will also see increases of up to 0.20%.

Principality will also be increasing its 2-year 85% LTV products by up to 0.21%, its 2-year 90% LTV product by up to 0.13%, and its 2- and 5-year 95% LTV products by up to 0.15%.

All of the above products will continue to hold June end dates and no further changes will be made at this time.

Nicholas Mendes, head of marketing at John Charcol, said: “The market is in dire need of some positive movement from the Bank of England, until we see a rate reduction, we are going to see a period of rate increases as markets start to be unsettled.

“Mortgage holders coming to the end of their fixed deals this year and in early 2025 will need to be prepared to see rates higher than early predictions.

“Initial forecasts of a 3.5% fixed rate by August to late September are very unlikely, with any sign of such a deal now pushed back to later in the year.

 “While the temptation will be to wait and hold out for the best deal, it is strongly recommended that you speak with a broker so you can regularly understand the options available to you until your deal is due to expire.”