Mortgage misery continues as four more lenders announce rate hikes

Halifax, BM Solutions, Virgin and Nottingham Building Society have announced increases to their fixed rate offerings.

Halifax are increasing rates on purchase products by up to 0.2%. BM Solutions increasing rates by up to 0.24%. These take effect from Thursday 2nd May.

Virgin increased rates on products between 0.08% and 0.2% yesterday evening, while Nottingham BS have hiked product rates this morning by up to 0.25%.

Newspage asked mortgage brokers for their views.

Michelle Lawson, director at Lawson Financial said, “The lingering chill of spring persists in the mortgage market with yet more rate increases.

“This lacklustre trend hardly inspires confidence among borrowers, and without a spark to ignite the market, the surge in mortgage approvals witnessed in March may well taper off.”

Dariusz Karpowicz, director at Albion Financial Advice said, “The atmosphere in the mortgage market is rather grim, with major players like Halifax, BM Solutions, Virgin, and Nottingham Building Society repeatedly raising their fixed rates.

“This pattern of frequent rate hikes, sometimes occurring multiple times within a week, is casting a shadow over market sentiment.

“The anticipated “Spring Bounce” is nowhere in sight; instead, we’re witnessing a continuation of mortgage woes.

“Higher rates are expected to dampen buyer enthusiasm and potentially delay any positive momentum. As for when borrowers can expect relief, it hinges on broader economic stabilisation. For now, the outlook remains cautious and subdued.”

Gary Bush, financial adviser at MortgageShop.com said, “It beggars belief that Halifax, BM Solutions, Virgin Money and Nottingham Building Society are all increasing their mortgage rates on the same day that Skipton Building Society is making considerable decreases.

“Surely lenders should all be going in the same direction, in this case downwards, budgets are tight across the country and this activity just creates more confusion with customers.”