Major high street bank raises mortgage rates which is ‘another nail in the coffin’

HSBC has announced to raise mortgage rates from Friday which is “another hammer blow” Britain’s beleaguered property market.

This week TSB and Santander have raised rates ending Optimism for early 2024, which is dwindling with more “bad news for mortgage borrowers.”

HSBC have not confirmed how much the rates will rise, but existing and new residential customers will be affected.

Ashley Thomas, director at Magni Finance said,”HSBC hiking rates is yet another hammer blow to Britain’s beleaguered property market.

“2024 started on a high but those days now feel like a distant memory as more lenders reprice upwards.”

Speaking to the Newspage news agency, Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management said, “HSBC increasing rates will be the final nail in the coffin for consumer confidence in both the banking system and this government.

“Rates are all over the place, the Bank of England seem to be ignoring the reality of the cost of living crisis and the recent recession announcement. It won’t be long, if not immediately, that the rest of the big six follow suit.”

Ashley Thomas, director at Magni Finance added, “HSBC hiking rates is yet another hammer blow to Britain’s beleaguered property market. 2024 started on a high but those days now feel like a distant memory as more lenders reprice upwards.”

Elliott Culley, director at Switch Mortgage Finance said, “The reversal in rates over the past two weeks is a result of lenders cutting rates sharply in January in a bid to obtain as much business as possible.

“We are now in the hangover period from the rate war we experienced in January. Lenders squeezed their margins so much that any increase in swap rates, as we are now experiencing, would mean a reversal in rates. This shows how fragile the current market is and that borrowers should remain proactive in the market to ensure they secure the best deal.”