Mortgage lenders still lowering rates despite Bank of England rate hikes
HSBC for Intermediaries is the latest lender to announce fixed rate price improvements despite the Bank of England's decision to raise the base rate to a 14-year high of 4% last week.
While most mortgage rates have come down over the last few months, more than 1.4 million households in the UK face the prospect of interest rate rises when they renew their fixed-rate mortgages in 2023. This is according to figures from the Office for National Statistics.
Aaron Strutt, product director at Trinity Financial, says: "Some mortgage lenders were improving their rates on the day of the base rate hike, which is quite incredible.
"The banks and building societies are getting used to the Bank of England's announcements. They know the higher rates go, the tougher it will be for borrowers to get an affordable mortgage, let alone a large enough mortgage to purchase the property they want."
What is happening to standard variable rates?
Remaining on a lender's standard variable rate is likely to be a costly mistake for the average customer because these rates have become more expensive.
Halifax and Lloyds Bank have increased their standard 'revert to' rates by 0.5% to 7.49%, and BM Solutions has raised its standard variable rate for buy-to-lets to 8.34%.
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