Barclays and Coventry raise mortgage rates but fixes still start from just below 4.2%

Mortgage lenders have continued to make their rates more competitively priced over the past three weeks, although the pace of fixed-rate price reductions has slowed significantly.

One small mortgage lender, Gen H, just emailed Trinity Financial's brokers to say its rates are going up by 0.19%. The message said: "You’ve probably read the headlines: more widespread conflict has ticked up in the Middle East – as a result, swaps have climbed overnight and we need to reprice again. Hopefully rates will come back down quickly and big lenders just will be able to absorb the hit on swap rates – but now is probably the time to consider locking in deals for your clients just in case."

Barclays rates are going up marginally, and Coventry Building Society are also raising rates, and more price hikes are likely.

Many borrowers are still taking two-year fixes priced around 4.3% and tracker mortgages below 4%, particularly if they expect the Bank of England to cut the base rate from 3.75% this year or next year. Also, if they want more flexibility in the form for low or no early repayment charge products.

Lloyds has launched exclusive Premier two-, three-, and five-year mortgage rates that undercut many of the market's cheapest rates. They are available to Trinity Financial's brokers through Halifax for Intermediaries and to borrowers earning £100,000 or more. The best buy fixed rates start from below 4.15% for eligible first-time buyers and home movers with larger deposits.

Santander has also introduced new remortgage deals between £500,000 and £2 million as competition for higher-value borrowing increases.

However, political developments in the UK and overseas, economic uncertainty and renewed tensions in Iran could affect inflation, swap rates, mortgage pricing and currency markets. With mortgage pricing and exchange rates capable of changing quickly.

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. It is for general information purposes and is not advice.

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