How lenders are reacting to the interest rate rise

Following on from last week’s Newsletter where we highlighted the likely Bank of England (BoE) base rate rise, subsequently, we are already seeing many lenders react by either withdrawing products or increasing their rates.

Natwest was one of the larger lenders to announce changes to their product rates. They increased rates across their buy-to-let range, for example, a 60 per cent LTV two-year fixed rate moved from 2.06 per cent to 2.31 per cent, while the 75 per cent LTV product rose by the same margin to 2.35 per cent.

Santander also followed suit with new rates introduced across its BTL range for purchases and remortgages. Across two and five-year fixes, rates have been set at 2.44% with LTVs of 75%.

And although other lenders like Nationwide and Virgin Money have also increased rates, we still have access to a number of low rates available for both buy to let and residential mortgages. 

If you haven’t already, we encourage you to get in touch so that we can check to see if you are on the best possible deal for your circumstances. Remember we have access to over 75 lenders and some 30,000 mortgage products, some available exclusively to us. 

Speak to a member of the team or our senior broker, Danny O’Keeffe about your current mortgage product, get in touch now on 0208 364 3444 or schedule a call back by clicking on the button below. 

Average Property Price Jumps Past £350,000
The average price of a property coming onto the market came to £354,564 in March, shows the latest house price index from Rightmove. This 1.7% monthly increase, which compares to 2.3% in February, is the largest recorded for March since spring 2004. It also means that as of this month, house prices grew 10.4% annually, the fastest growth seen for this metric since June 2014.

10 Year Fixed Mortgages Garner Attention Amid Economic Uncertainty
Rising interest rates, soaring inflation, and increased energy bills may have forced consumers to consider 10-year fixed mortgages. Unique data published by Moneyfacts has shown an increase in search volumes for “10-year fixed-rate mortgage” products across their consumer website. Moneyfacts believe this to reflect the current economic conditions. With interest rates on the rise and the increased cost of living not showing any signs of abating, consumers appear to be looking to protect themselves from future mortgage rate hikes.

Leave a Reply

Your email address will not be published.

Share This

Copy Link to Clipboard