Coventry, HSBC and Nationwide announce fixed rate mortgage price increases
Tags: Remortgages, Residential mortgages
Quick Summary
Several major UK lenders — including Coventry Building Society, HSBC, Nationwide and Virgin Money — have announced increases to some of their fixed-rate mortgage deals, reflecting rising funding costs in the financial markets. The changes follow recent increases in swap rates, which lenders use to price fixed mortgages. As these costs rise, banks and building societies often pass them on to borrowers through higher mortgage rates.
Coventry has increased rates across various residential and buy-to-let fixed products, while HSBC has also raised selected deals for new and existing borrowers. Nationwide has adjusted pricing on parts of its fixed-rate range as well. These changes highlight how quickly mortgage pricing can shift in response to market conditions.
Despite the increases, competitive mortgage deals remain available, with some lenders still offering relatively low rates depending on deposit size and loan-to-value. However, further rate changes are almost certain if market volatility continues. Borrowers considering a mortgage or remortgage may therefore benefit from securing a deal quickly before additional increases occur.
Nationwide, Coventry Building Society, Virgin Money and HSBC are the first major lenders to announce rate increases.
HSBC and Coventry are the first big lenders to announce rate hikes based on the funding cost increases brought on by the chaos in the Middle East. It seems almost certain we are going to see a lot more rate changes over the coming days so if you are on the hunt for a mortgage, it is worth locking into a new deal now.
There is a huge number of remortgages due this year and most borrowers can switch rates up to four months before their fixed rates expire. Delaying a decision to select a new deal could be costly, especially if you have a larger mortgage loan.
Virgin has announced it is putting many of its rates up and its two-year fixes will be increased by up to 0.25%, so they now start from 3.92%.
How much are mortgage rates now?
The very cheapest two-year fixes start from just below 3.75%, while five-year fixes are available from 3.85%. However, they may be withdrawn at short notice.
These are typically offered through larger lenders like Barclays, Halifax, NatWest, and HSBC for Intermediaries.
Barclays and Santander offer a selection of the most competitively priced two-, three-, and five-year fixes. Nationwide offers lower rates to homebuyers taking out a mortgage of over £300,000. The building society is also taking an average of seven days to produce mortgage offers.
Should borrowers be thinking about fixing their mortgage more urgently right now?
Aaron Strutt, product director at Trinity Financial, says: "Yes. There are a large number of remortgages this year, and most borrowers can switch rates up to four months before their fixed rates expire. Rates are being pulled without much notice, which means even if you put off sorting your mortgage out for a few hours, you could end up paying more for years. This is no exaggeration."
Speak to a Trinity Financial adviser today
The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.
Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change.
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