HSBC increases mortgage rates four times in eleven days as more lenders push up the cost of borrowing
HSBC has announced four mortgage rate increases in eleven days as lenders continue pushing up borrowing costs. In HSBC's latest change, the bank raised the price of its mortgages between 0.45% and 0.5%.
Despite the Bank of England base rate only rising by 0.25% to 1.25%, lenders have raised rates because of swap rates and funding pressures.
Last week Nationwide increased its fixed-rate mortgages by up to 0.4%, and NatWest raised its prices by as much as 0.27%. Bank of China has raised its fixed rates by 1%, while Accord Mortgages increased its seven-year fixes by 0.6%. Santander has also pulled its cheapest rates available to borrowers with a 40% deposit.
Not all lenders have pulled their rates because of funding issues. Platform for Intermediaries, part of The Co-operative Bank, cited unprecedented demand for its mortgage products and to maintain application processing expectations, it has temporarily withdrawn its new business mortgages. The bank will re-introduce them on Thursday, 23 June 2022.
Aaron Strutt, product director at Trinity Financial, says: "Many borrowers will be particularly frustrated to find deals getting more expensive, especially if they are trying to buy a property or their remortgage is due. Some people have been holding off before deciding which deal to take, and they have been shocked to see how much the rates have increased.
"Trinity's brokers get notifications from the lenders when rates are going up, and they do everything possible to tell clients. If you are applying for a mortgage directly, many lenders state their rates can be withdrawn at any time and without notice. This means you are unlikely to find out if the rate is going unless you have submitted an application."
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation