Jun 29, 2023
Mortgages rates: Fresh round of rises imposed by lenders
Major mortgage lenders have embarked on a fresh round of rate rises, with the interest rate on a typical five-year fixed deal now close to 6%. The Halifax, part of Lloyds Banking Group - the UK's biggest lender, and the Nationwide Building Society have increased rates on new deals. Nationwide increased fixed rates, available through brokers, by up to 0.35% on Thursday, a day after HSBC raised its rates by up to 0.55%, and TSB by up to 0.35%. On Thursday last week, the Bank of England surprised markets by raising its benchmark interest rate from 4.5% to 5%, as it tries to tackle the high rate of inflation. "More of the big banks and building societies are increasing their prices again or pulling their mortgages, which means new borrowers and people looking to remortgage will face even higher repayments."We now seem to be in a pretty endless cycle where lenders keep raising rates as they struggle to price their mortgages. The latest rate rises mean that average rates on new deals continue to go up, as they have for months. In June last year those rates were closer to 3%. At their peak after the mini-budget, the average two-year rate was 6.65%, and the five-year was 6.51%. On Sunday, Prime Minister Rishi Sunak urged homeowners and borrowers to "hold their nerve" over rising interest rates - a comment met with derision by opposition parties.
Related companies
Make a complaint about HSBC by viewing their customer service contacts.
