Lenders reprice while gilt market reaches levels ‘not seen for decades’ – round-up
Gilt yields have moved higher, with sharp increases in both 10- and 30-year maturities, while lenders have repriced a number of mortgage products.
Ahead of the Autumn Budget, Jason Hollands, managing director of Bestinvest, said the rise in government borrowing costs had created a more challenging backdrop for the Chancellor.
He said: “With 30-year gilt yields near 6% and 10-year yields at 5.5% – levels not seen for decades – the Chancellor faces a much tougher fiscal backdrop, narrowing the room for manoeuvre.”
TSB makes rate changes
TSB has increased a range of product transfer and additional borrowing rates across its residential and buy-to-let (BTL) ranges.
For product transfers, residential one-year fixed rates have increased by 0.3%, while selected two- and five-year fixed rates have risen by up to 0.15%. Residential three-year fixed rates have also increased, with the 60-75% loan-to-value (LTV) £0 fee product up by 0.05% and selected 75-85% LTV products up by as much as 0.1%.
Industry, not regulation, must lead later life lending change
Sponsored by Suffolk Building Society Intermediaries
Within the BTL product transfer range, one-year fixed rates have increased by 0.3%. Selected two-year fixed rates at 0-60% and 75-80% LTV have risen by up to 0.2%, while five-year fixed rates at 60-80% LTV have increased by up to 0.15%.
For additional borrowing, TSB has increased selected residential two- and five-year fixed rates by up to 0.15%, while residential three-year fixed rates above 60% LTV have risen by up to 0.1%.
In the BTL additional borrowing range, the two-year fixed rate at 0-60% LTV and the five-year fixed rate at 60-75% LTV have both increased by 0.05%.
Barclays hikes for second time in a week
The lender has increased its residential purchase two-year fixed rate at 60% LTV with an £899 fee by 0.1 percentage points from 5.05% to 5.15%. Its two-year fixed rate at 75% LTV with an £899 fee has also risen by 0.1 percentage points to 5.3%.
At higher LTVs, the two-year fixed rate at 90% LTV with an £899 fee has increased from 5.44% to 5.54%, while the five-year fixed rate at 95% LTV with no fee has risen from 5.62% to 5.72%.
In the remortgage range, the lender has increased its Great Escape two-year fixed rate at 75% LTV with no fee by 0.21 percentage points from 5.34% to 5.55%, while the five-year fixed rate at 75% LTV with a £999 fee has risen by 0.1 percentage points to 5.42%.
The lender has additionally increased rates on several large-loan products for purchase and remortgage customers, as well as across its existing customer reward range.
David Hollingworth, associate director at L&C Mortgages, said: “Barclays’ latest move highlights just how quickly the mortgage market can change. Rising funding costs are putting pressure on lenders, which may lead to further repricing in the weeks ahead. Borrowers who are considering fixing would be wise to act sooner rather than later.”
Principality BS makes increases plus minor reductions
Principality Building Society has made a mix of rate reductions and increases across its residential, BTL, holiday let, joint borrower sole proprietor (JBSP) and new-build ranges.
On the reduction side, the lender has cut rates on its residential five-year fixed 95% LTV products by 0.05%. It has also lowered the rate on its holiday let five-year fixed 60% LTV product with a £1,395 fee by 0.03%.
Elsewhere, selected residential rates have increased. The lender has raised rates on two-, three- and five-year fixed products at 65%, 75%, 80% and 85% LTV by up to 0.05%. Two-year fixed 90% LTV products with a fee and five-year fixed 90% LTV products without a fee have both increased by 0.02%.
For new-build borrowers, the lender has increased rates on its two- and five-year fixed 75% LTV Help to Buy Wales products by 0.13%.
Within the BTL range, the five-year fixed 60% LTV product with a £1,395 fee has increased by 0.05%, while selected two- and five-year fixed 70% LTV products and the five-year fixed 75% LTV product without a fee have increased by 0.03%.
Halifax makes rate increases up to 0.15%
Halifax Intermediaries will increase selected rates across its homemover, first-time buyer, remortgage, product transfer and further advance ranges from 2 October.
For homemover and first-time buyer products, selected two-, three- and five-year fixed rates will increase by up to 0.1%.
Within the remortgage range, selected two-, three- and five-year fixed rates will rise by up to 0.15%. For product transfers and further advances, selected two-, three- and five-year fixed rates will also increase by up to 0.15%.
