Mortgage rate ‘shock’ as HSBC, Santander and Nationwide hike rates – round-up
Mortgage rates have seen increases up to 45 basis points (bps), with one lender firmly out of the sub-5% rate.
Santander hiked its rates by 45bps, effective Wednesday.
Aaron Strutt, product and communications director at Trinity Financial, said: “A price hike of 0.45% on the two-year fixes and 0.4% on the five-year fixes is going to come as a bit of a shock to customers who check Santander’s rates today and again on Wednesday. I can’t remember the last time five of the big six lenders hiked their rates on the same day.”
He added that this rate change meant the bank has effectively pulled the last of its sub-5% rates.
Within its first-time buyer (FTB) range, its 90% loan-to-value (LTV) two- and three-year fixed rate with no fee and £250 cashback was increased by 45 bps to 5.8%.
The 95% LTV two-year fixed rate with £250 cashback was increased by 45 bps to 6.05%.
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Similarly, within its buy-to-let (BTL) range, rate hikes of 40-45bps were seen. The highest rate was the five-year fixed rate with nil fee, increased by 40bps to 5.51%.
Nationwide rate hike with lenders ‘under a lot more pressure’
From tomorrow, Nationwide will hike rates across its FTB, home mover, remortgage, switcher and additional borrowing ranges.
Fixed rates will increase by as much as 30bps.
Strutt added: “Lenders are under a lot more pressure to fund their mortgages because of increases to borrowing costs.”
First-time buyer rates now sit between 4.64 and 5.74%. Meanwhile, remortgage rates now near the 6% range.
HSBC ups pricing
HSBC UK will increase rates across a wide range of residential mortgage products from 15 September, including first-time buyer, home mover and remortgage deals.
All two- and five-year fixed rates and all two-year tracker rates will rise across every LTV band, including Premier, High Value Mortgage and energy-efficient product ranges.
The lender is also making increases across its BTL proposition.
All two- and five-year fixed rates and two-year tracker products for BTL purchase and remortgage customers will rise across all LTVs, including Premier, £3,999 fee and energy-efficient mortgage options.
Existing customer borrowing more and product transfer rates are also increasing.
