Major lenders increase mortgage rates as repricing gathers pace
A number of major mortgage lenders, including HSBC, Halifax Intermediaries, BM Solutions and Skipton Building Society, have announced repricing.
A number of major mortgage lenders are increasing rates this week, with HSBC, Halifax Intermediaries, BM Solutions and Skipton Building Society all announcing repricing across significant parts of their product ranges.
HSBC will increase rates across the majority of its residential and buy-to-let (BTL) fixed-rate ranges.
The changes affect first-time buyer, home mover and remortgage products, including fee saver, standard, high value and Premier Exclusive mortgages across a range of loan-to-value (LTV) bands.
The lender is also increasing rates on its Energy Efficient Homes products, international residential and buy-to-let ranges, and buy-to-let remortgage products.
The repricing takes effect from 21st July, with no other rate changes announced.
Halifax Intermediaries is set to increase rates by up to 0.20% across all 2-, 3- and 5-year fixed-rate homemover and first-time buyer products.
The lender is also increasing rates by up to 0.10% on all 2-year tracker products for homemovers and first-time buyers, while remortgage tracker rates will also rise by up to 0.10%.
Applications on existing products must be submitted by 8pm on 20th July.
In addition, BM Solutions is increasing rates by up to 0.19% across its buy-to-let range.
The changes apply to personal ownership buy-to-let and let-to-buy purchase and remortgage products, limited company buy-to-let purchase and remortgage products, as well as product transfer and further advance fixed-rate deals.
Existing product applications must also be submitted by 8pm on 20th July to secure current pricing.
Skipton Building Society is increasing rates across its fixed-rate mortgage range for both new and existing customers.
The lender said the changes will be available from 21st July, with product end dates also being extended to November 2028, November 2029 and November 2031.
Current equivalent products will be withdrawn at 9pm on 20th July.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “None of this is surprising. Swaps have been climbing since the Middle East escalated, with two-year SONIA up from 3.978% a month ago to 4.177% today and five-year from 4.008% to 4.231%.
“Lenders price off swaps, not Bank Rate, so this is simply catching up with where funding costs already are. When a lender as prominent as Halifax moves, the rest of the market tends to fall in line within days.”
He added: “June’s CPI lands Wednesday and is expected to ease to around 2.6%, but I wouldn’t read too much into it.
“The energy price cap rise will start showing up in July’s figures, and the war in Iran is still very much live, so any relief here is likely to be short-lived.
“The Bank of England meets the following week on 30th July, and the vote split has been drifting hawkish, with two members already backing an immediate hike to 4%.
“My money’s still on a hold, but the debate inside the MPC tells you which way the risk is skewed, and a rise, at this meeting or the one in September, looks more likely than a cut.”
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