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Swap rates – the interest rates at which the banks lend to each other and which help determine the price of fixed rate mortgages – have continued to climb over recent days. Many lenders have increased their fixed rates at least twice within a week. Barclays and NatWest are increasing the cost of selected fixed rates for new customers from tomorrow .
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This rate will be available until 10pm on Thursday so borrowers need to act fast if they want to secure this deal. Major mortgage lender HSBC is increasing the cost of fixed rate deals through brokers by up to 0.35 percentage points, writes Jo Thornhill. It is thought over 500,000 people will come to the end of their fixed rate mortgage deals during the remainder of 2023. Recent increases to fixed mortgage rates across the market mean that borrowing costs have soared for those on variable rates and those looking to remortgage or switch to a new deal. Santander has bucked the recent trend of serial rate increases by major lenders by announcing that it is holding its mortgage rates.
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At the same time, HSBC is increasing its standard variable rate for buy-to-let customers from 7.10percent to 7.35percent. The bank’s residential SVR is 6.99percent and there are no plans to increase it. Mortgage brokers describe a ‘frenzy’ in the market and say conditions are extremely difficult for borrowers looking for a new mortgage deal. It will launch its new range of deals on Friday morning, with brokers saying they are braced for higher rates. The HSBC move will affect new customers and existing ones looking for a new product when their existing one comes to an end, or otherwise seeking a remortgage.
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