HSBC joins the rollercoaster of rates creating turmoil for borrowers

HSBC have this morning announced increases across the whole of their fixed rate range, which will come into effect tomorrow.

Newspage asked brokers for their thoughts on this announcement, and the general state of the mortgage market at the moment.

Justin Moy, managing director at EHF Mortgages said, “In a blow to borrowers, HSBC have joined Barclays and NatWest this week, with increases across their entire range of fixed rate deals, both residential and buy-to-let.

“Swap rates have continued to increase, suggesting there is not a lot to look forward to in the Budget this week for mortgage holders.

“Mortgage holders need a pick-me-up and the past 6 weeks or so certainly haven’t provided it.”

Charles Breen, founder at Montgomery Financial said, “Yet more mortgage pricing pandemonium.

“Another lender joins the rollercoaster of rates creating turmoil for borrowers.

“This is the harsh reality of lenders’ short-sighted mortgage moves to steal market share rather than looking at the longer-term picture and creating a more sustainable lending environment.

“This whiplash pricing only fuels mortgage chaos and uncertainty, further damaging borrowers’ finances. It’s just fickle pricing from lenders plain and simple.”

Simon Bridgland, broker director at Release Freedom said, “The continued rise in fixed rates isn’t abating just yet, with HSBC upping their offering.

“However, with the Budget on the doorstep, have HSBC just shot their bolt too soon and in the wrong direction?

“Knowing how much they like to lead the way with deals, they are sure to make a swift about-turn if the news from Jeremy Hunt this Wednesday is good for the financial markets. Is HSBC being the wise elder in the market or is the young upstart Gen H, having dropped their rates this week, aiming to take a front row seat in the rate tables?

“Was it good foresight of Gen H or just getting themselves in line with the rest of the market, we will soon see.”