Competitively priced mortgages still available despite market changes

by Aaron Strutt

May 31 2023

There are still lots of decent mortgage products to choose from even though many of the banks and building societies have been busy increasing the price of their mortgages over the last week.

Barclays for Intermediaries, Halifax, HSBC, NatWest and Santander offer some of the most competitively priced fixed and tracker rates, even with the recent price hikes.

Aaron Strutt, product director at Trinity Financial, says: "Our brokers have access to lenders offering competitively priced rates with two-year fixes starting from just over 4.40% and five-year rates at just over 4% at the moment.

"There is a reasonable chance these rates will get more expensive over the coming days. The lenders offering the cheapest mortgages will start to get very busy and have to act to manage demand for their rates. They normally do this by pushing up their prices." 

We constantly monitor the mortgage market

Trinity Financial's brokers have been calling their clients to tell them we need to submit their applications to ensure they secure the cheapest deals.

If borrowers take too long considering if they want a certain mortgage, there is a fair chance it will be gone by the time they apply.

Data from Moneyfactsgroup.co.uk shows since the start of last week, the number of mortgages has fallen from 5,385 deals to 5,012. More rates have been within since these figures were calculated. 

Why are mortgage rates going up?

The money markets have been spooked by the higher-than-expected inflation figures and the cost of funding fixed rates has increased. Hopefully, this is starting to stabilise now.

Lenders have been passing on these costs, which put pressure on their competitors who struggle to cope with the increased demand for their products. 

One smaller building society recently emailed us to say, "Due to volatility in interest rates we have temporarily withdrawn our fixed-rate products."

Another lender added: "Due to continued demand for our specialist mortgage offering, we are receiving a continuously high volume of mortgage applications. This increasing volume of applications has impacted our service levels, which our dedicated Intermediary Support Team have been working to reduce." 

The biggest lenders to increase rates include:

• Accord Mortgages - Fixed rate mortgages increased by up to 0.77%.
• Clydesdale Bank - Selection of fixed-rate mortgages withdrawn.
• Digital Mortgages by Atom Bank – Some rates increased by 0.4%.
• First Direct – Some rates increased by up to 0.36%.
• Coventry Building Society – Many fixed-rate mortgages withdrawn.
• Skipton Building Society – Many fixed rates increased by up to 0.64%.
• Nationwide Building Society – Fixed and tracker rates increased by up to 0.45%.
• Halifax – Selected remortgage rates increased.

Many smaller banks and building societies have withdrawn some of their mortgages while waiting for the cost of funding mortgages to stabilise.

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

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