Home Property Finance & InvestmentMortgages HSBC, Accord increasing fixed rates as swaps worsen

HSBC, Accord increasing fixed rates as swaps worsen

22nd Apr 24 2:56 pm

NatWest,  Accord, Leeds BS and HSBC have announced rate increases this morning, in response to increases in Swap rates over the last few days.

With a cut to base rate looking less likely in the coming months, the money markets are pricing in for higher rates in the short term.

Newspage Mortgage Brokers were asked, in particular, what this means for borrowers in the short and long term, the effect on those looking to buy, and will we see more increases over the next few months.

Simon Bridgland, broker and director at Release Freedom said, “This news is compounding the pain of many beleaguered borrowers who simply don’t know which way to turn.

“This morning, I have been calling clients who have been sitting on the fence urging them to proceed as this increase is potentially going to be with us for several months.

“Inaction will weigh heavily on household purses so don’t delay, there is a finite amount of hours left to get deals done before the increases take effect , pick up the phone to your broker immediately or you will be paying more money for years to come.”

Tracey Dixon, broker at Pure Mortgage and Protection said, “The lack of a predicted base rate cut creates uncertainty in the long-term borrowing landscape.

“It’s difficult to say definitively if rates will continue to rise or stabilize. This might make borrowers cautious about taking on large debts like mortgages.

“The long-term picture is less clear. If the base rate increases do happen, it might eventually lead to a more stable economy, potentially benefiting borrowers in the long run.

“However, there’s also a risk of a slowdown in economic growth, which could limit borrowing opportunities.

“The next few months will be crucial in seeing how the base rate situation unfolds and its eventual impact on borrowing costs.”

Elliott Culley, director at Switch Mortgage Finance, said, “The rate rollercoaster rolls on. Just when the market appears to be picking up some momentum, there is a sharp change of direction.

“We are now seeing the spike in SWAP rates last week, filtering through to the public as lenders raise their rates in response.

“The volatility we are experiencing currently really amplifies how important it is to secure a rate as soon as possible, as this could saving you hundreds of pounds, especially for exisiting homeowners.”

Leave a Comment

You may also like