It’s bad news for anyone looking to buy a house or remortgage, as Barclays has announced it’s increasing the cost of some fixed-rate mortgage deals. This means your monthly repayments could be higher, adding to the pressure on household budgets.

The reason for the hike is a change in the market. Banks are charging each other more for money, and this is reflected in the rates they offer customers. It’s all tied to the Bank of England’s interest rates, which are expected to stay high for a while longer. It’s no longer expected that the Bank will lower rates in June, which is why lenders are starting to increase their own rates.

Which deals are affected?

Barclays is raising the rates on a range of fixed-rate deals, both for buying a home and remortgaging. For example, their 5-year fixed rate deal for those with at least 25% equity in their property is going up from 4.45% to 4.65%. This means you’ll pay more each month for the next 5 years.

But it’s not all bad news. Barclays has also lowered rates on some of its 5-year fixed rate deals.

NatWest follows suit

Barclays isn’t alone. NatWest is also making changes to its mortgage rates, both increasing and decreasing some deals. They’re lowering the rate on their 2-year fee-free fixed rate for remortgages at 60% loan to value, but also raising the rate on their 5-year fixed rate for home purchase at 60% loan to value.

What does this mean for you?

If you’re considering a mortgage, it’s a good idea to shop around and compare rates from different lenders. You may find a better deal elsewhere, or you may want to consider a different type of mortgage altogether. If you’re already on a fixed-rate deal, you’ll have to wait until your current term ends before you can switch to a new deal with a lower rate.