HSBC is raising rates across its fixed-rate residential mortgage deals from today, becoming the latest among Britain’s largest lenders to hike rates.
It marks the second time within a fortnight that HSBC has pushed up rates.
NatWest also this week hiked several of its two and five year deals by up to 0.1 percentage point for existing customers who remortgage.
Barclays announced rises of up to 0.25 percentage points on its purchase and remortgage ranges yesterday.
The fresh round of rises deals a further blow to Britain’s 1.6million homeowners who are coming up to remortgage.
HSBC is raising rates across its fixed-rate residential mortgage deals from today, becoming the latest among Britain’s largest lenders to hike rate (stock image)
Ranald Mitchell, broker at Charwin Private Clients, said borrowers are in for more mortgage misery as HSBC becomes the latest lender to increase rates in what has now become an ‘established upward trend’.
‘This hike will further dampen the hopes of millions of mortgage holders and aspiring homeowners that this year would be better than last,’ he said.
Swap rates, which dictate how much it costs banks to lend money to borrowers, have been rising after the UK rate of inflation remained unchanged at 4 per cent in January.
As a result, lenders have raced to pull deals and reprice them at higher rates.
The average two year fixed-rate deal is now 5.76 per cent, up from 5.58 per cent a month ago.
Five year deals have also risen from 5.22 per cent to 5.34 per cent within the same period, according to rate scrutineer MoneyfactsCompare.
Katy Eatenton, mortgage specialist at Lifetime Wealth Management, suggests that homeowners coming up to remortgage should apply for a new deal now before further mortgage rates are pulled.
‘It’s now time for borrowers to stop procrastinating or waiting for the bottom to fall out of the market,’ she says.
‘If, by a miracle, rates start dropping again after the Budget, products can be changed, but if they don’t, the rates around today will be gone tomorrow.’