Halifax and Barclays have both announced mortgage rate increases, which are taking effect this week.
As of 18 October, Halifax will increase its two- and five-year fixed remortgage rates by between 0.11% and 0.24%.
It will also increase pricing across select product transfer and further advance mortgage rates.
Nick Mendes, mortgage technical manager at John Charcol, said: “Halifax has responded swiftly to the changing market dynamics following Barclays’ move this morning, as well as recent adjustments by Santander and NatWest in the past few days. This proactive approach helps Halifax secure its position in the competitive landscape and manage the increased business volumes triggered by competitor actions.
“Collectively, lenders have shown restraint in reacting to recent swap rate increases; however, the latest competitor repricing has placed them in a challenging position.”
He added: “The recent price adjustments are a minor setback, effectively bringing rates back to where they were four to six weeks ago, rather than signalling drastic changes. If you’re nearing the end of your current deal or beginning a new application, it’s advisable to act quickly, secure a rate now, and review your options regularly rather than delaying.
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“While the market responded positively to yesterday’s inflation data, it is unlikely that many lenders will lower their prices immediately. Most will likely wait for the upcoming Budget announcement before making any further adjustments.”
Barclays ups rates
This morning, Barclays also announced it would lift mortgage pricing, removing its deals with sub-4% rates.
For example, its two-year fixed premier mortgage for existing residential purchase at 60% loan to value (LTV) with an £899 fee has been increased from 3.87% to 4.07%, while the standard product has risen from 3.9% to 4.1%.
At the higher-LTV tiers, the two-year fixed premier product at 90% LTV will rise from 4.75% to 4.95%, while the fee-free standard product at the same level will rise from 4.95% to 5.15%.
