Lenders pushing tracker rates price around 4% as fixed mortgages get more expensive

Barclays, HSBC and Halifax kicked off this week with more mortgage rate increases, following widespread repricing across the market last week. The rise in the cost of fixed rates has increased the popularity of tracker rates which still start from 3.99%.

Halifax has pushed up the cost of selected fixed rates and withdrawn its 18-month remortgage fixes. After these latest changes, Halifax only has a few fixed rates below 5%, mainly for borrowers with larger deposits and higher earners. It does have tracker rates from just over 4%.

Aaron Strutt, product director at Trinity Financial, says: "For those with a Lloyds Premier bank account, or willing to open one prior to making a mortgage application, Trinity Financial's brokers can still access two, three and five-year fixed rates from around 4.80%."

Barclays increased selected remortgage rates by up to 0.25%, with its Premier two-year fixed rate rising from around 4.65% to just over 4.90%. The bank only raised its rates a week ago. HSBC has also pulled its two and five-year fixes below 4.80% but still has trackers at just over 4%. Hopefully the market will settle soon, as mortgage pricing has been changing almost constantly.

Santander announced that it is improving the price of some rates while it is withdrawing most of its ten-year fixes. Santander does not have any sub-5% fixes now, only trackers priced around 4%.

Data from Rightmove says average asking prices rose 0.7% in September to £367,440, the first monthly increase since May and slightly stronger than the typical September rise. However, it describes this as a modest recovery rather than a major turning point.

Representative Example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a 3.99% variable rate for two years and then on a standard variable rate of 5.74% for the remaining 28 years would require 24 payments of £1,910.53 followed by 336 monthly repayments of £2,312.91. The total amount repayable would be £823,221.48.

This amount is illustrative and may vary, made up of the loan amount, plus interest (£423,591.37) and £899 (product fee), £80 (final repayment charge), £25 (completion fee). The overall cost for comparison is 5.6% APRC representative.

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

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