Rate rises “have become the new normal” after Halifax and BM Solutions become the latest lenders to increase mortgage rates.
increased mortgage rates by 0.2 per cent, Switch Mortgage Finance director, Elliott Culley, has argued.
Launching today (April 26), Halifax’s 0.2 percentage point increase will be applied to selected homemover, first time buyer, remortgage and product transfer/further advance products.
Additionally, BM Solutions announced the same increase across its buy-to-let and let to buy range and across its product transfer and further advances range.
This follows similar increases from lenders such as TSB and Barclays.
Switch Mortgage Finance director, Elliott Culley, said: “The early spring shoots of a housing recovery have been flattened by the continuous volatility seen in the economy.
“Borrowers need to remain vigilant and act decisively to secure the best rates available.”
Brooklyns director, Harps Garcha, described the announcements as “disheartening for many homeowners” but pointed out “it wasn’t entirely unexpected given recent events such as the increase in swap rates”.
“For those whose fixed-rate mortgages are set to expire in the next five to six months, it’s essential to seek advice and decisively.
“The current fluctuating mortgage landscape has become increasingly unpredictable.”
EHF Mortgages managing director, Justin Moy, added: “Yet more bad news for mortgage borrowers, as two of the biggest lenders announce increases to their fixed rate products.
“As mortgage rates creep up and past 5 per cent even for those with the largest deposits, we seem to be lacking a clear strategy of the government or the Bank of England on how rates will eventually fall.
“Even 2 per cent inflation may not be enough to reverse the recent trends in rates, instead, we meander to a general election that won’t cure the problem either.”
A similar sentiment was shared by The Mortgage Expert adviser, Darryl Dhoffer, who said: “When the big ship Halifax increases mortgage rates, smaller lender boats will follow.
“Borrowers need stability and we have had nothing but instability for the past 16 months.”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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