A number of major mortgage lenders have announced rate increases this morning, as we hit the half-way point in the election campaign.
Barclays have increased a number of deals by 0.15%, TSB has increased rates across their residential and BTL ranges by up to 0.35% (including Existing Client products), while smaller increases by Leeds BS, Clydesdale Bank were also announced by 10am this morning.
Katy Eaton, mortgage & protection specialist at Lifetime Weatlh Management said, โRising mortgage rates are sucking the energy out of the property market.
โThis is certainly not the direction of travel we had anticipated for this stage in the year.
โItโs looking ever more likely that the base rate will hold next week and that the outlook for borrowers will be roughly as bright as the UK summer.โ
Justin Moy, managing director at EHF Mortgages said, โIt feels like one lender has blinked and the rest have followed.
โMoney markets haven’t increased excessively in the last week or so, in fact longer swap rates have fallen, so these increases may reflect activity from the end of last week.
โAt a typically busy time for home buyers, higher mortgage rates are the last thing borrowers and the property market need. The year started on a high but now the mortgage and property market, much like the weather, is unseasonally bad.โ
Stephen Perkins, managing director at Yellow Brick Mortgages said, โWage growth data proving sticky this week means there is not huge confidence in a base rate reduction in the early summer.
โAs a result, some lenders are playing it safe by slightly increasing rates. There is also an element of lenders managing levels of new business through these adjustments as some are struggling with demand for their products and managing to service the level of applications.
โNothing that has been said in any of the election debates so far has given us much confidence in the direction of travel for the economy.
โThe mortgage and property market appear to be drifting aimlessy right now.โ
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