Barclays have just announced their 2nd rate increase in the space of 7 days, showing how the uncertainty of the markets is sending shockwaves through mortgage industry.
We asked the Newspage Mortgage brokers again for their reaction to this news.
Justin Moy, managing director at EHF Mortgages said, “This second price increase by Barclays in less than 7 days just shows how fragile our market is.
“With lower expectations for base rate cuts, the cost of oil and imports escalating, this is going to be a difficult few months for borrowers and home buyers to navigate.
“Inflation is not the only factor when setting rates as we know, but the influence of worldwide issues has rapidly influenced recent Swap rates.”
Gary Bush, financial advisor at MortgageShop.com said, “Heartbreaking news for all Barclays existing mortgage customers as they increase their rates twice in the past week – destroying any chances they might have of renewing their current mortgage rate with them.
“With no real data to confirm why UK lenders are in disarray at the moment with some decreasing rates while others increase.”
Dariusz Karpowicz, director at Albion Financial Advice said, “Barclays’ double rate increase within a week is a stark reflection of the current market volatility.
“Unfortunately, they’re not alone, as many major lenders are responding to rising swap rates by adjusting their pricing upwards.
“This trend highlights the immediate impact of market fluctuations on the mortgage industry, with lenders swiftly passing on the cost to borrowers.
“These moves underscore the need for potential homeowners to review their financial plans carefully in light of these changes.”
Leave a Comment