independent.co.uk
UK Mortgage Rates Rise
Major UK lenders hike mortgage rates despite Bank of England base rate cut.
English
United Kingdom
EconomyLabour MarketUkInterest RatesFinanceBankingMortgages
Nationwide Building SocietyHsbc UkSantanderTsbVirgin MoneyBank Of EnglandKnight Frank Finance
Hina Bhudia
- Which major UK lenders are increasing mortgage rates?
- Major UK lenders, including Nationwide, HSBC, Santander, TSB, and Virgin Money, are raising several mortgage rates despite a recent Bank of England base rate drop. These increases reflect the current swap rate environment and market trends.
- What is the overall outlook for mortgage rates in the UK?
- The rate hikes are not insignificant and are happening across multiple lenders; one large lender's move often triggers others to adjust pricing. A sustained change in inflation is needed before mortgage rates begin to fall.
- How is Nationwide responding to the recent Bank of England base rate cut?
- Nationwide is raising some fixed-rate mortgage deals by up to 0.20 percentage points but is also lowering certain tracker and 10-year fixed-rate products to remain competitive. The changes reflect the broader market conditions.
- Why haven't some mortgage rates decreased despite the Bank of England's base rate cut?
- The Bank of England recently cut the base interest rate to 4.75%, yet many mortgage rates are not immediately decreasing. This is because lenders had already factored in the base rate cut before it occurred.
- How do variable-rate mortgages differ from fixed-rate mortgages in their response to base rate changes?
- Variable-rate mortgages, such as tracker mortgages, typically adjust to reflect changes in the Bank of England's base rate. However, fixed-rate mortgages are less directly impacted and are subject to other factors such as swap rates and lender pricing.