NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Mortgage lenders hike rates again on fears of further BoE hikes

Published 06/06/2023, 15:51
© Reuters.  Mortgage lenders hike rates again on fears of further BoE hikes
SAN
-

Proactive Investors - Lenders are hiking mortgage rates on a daily basis over fears of another hike in UK base rates in late June, according to the tracking website Moneyfacts Compare.

Rates on the average two-year fix sat at 5.75% and 5.44% for five-year fixes on Tuesday, according to Moneyfacts, up from 5.72% and 5.41% respectively at the weekend.

Average two, five and ten-year fixes have all risen since the Office for National Statistics reported a rise in core inflation and a less-than-anticipated fall in the consumer price index between March and April.

It means an additional £45 and £47 extra per month on a £200,000 25-year mortgage for those purchasing two and five-year fixes respectively, Moneyfacts calculated.

“Volatility is down to the concerns surrounding future interest rate hikes, and lenders are reassessing their propositions,” Moneyfacts finance expert Rachel Springall said.

Halifax hiked some fixed rate offerings by 0.3 percentage points on Monday, while Leeds Building Society interest rose on a selection of deals by as much as 0.4 points.

Santander (BME:SAN) and Furness Building Society cut fixed-rate offerings over the weekend with the Co-operative scrapping them altogether, according to Moneyfacts.

Collectively, over 200 mortgages were pulled from the market between Friday and Monday as lenders re-evaluated offerings, representing 4% of all deals on offer.

Despite subsiding between March and April, analysts had expected a lower reading than the 8.7% consumer price index rate recorded for the month.

Core inflation unexpectedly rose month on month to 6.8% in April meanwhile, leaving a further base interest rate increase by the Bank of England “firmly on the table,” Pantheon Macroeconomics analysts said at the time.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.