Get ready for higher mortgage bills! HSBC is raising rates on its fixed-rate mortgages, and brokers warn that more lenders will follow suit. Hopes for a Bank of England interest rate cut in June are fading fast, and that’s sending shockwaves through the mortgage market. HSBC is the latest lender to increase rates, with selected fixed-rate deals for both residential and buy-to-let mortgages getting pricier from tomorrow.
What does it mean for you?
- Higher monthly payments: If you’re looking to buy or remortgage, you’ll be facing higher monthly payments than you might have expected just a few weeks ago.
- Less choice: Smaller lenders are already pulling back on some high loan-to-value mortgages, making it harder for those with smaller deposits to get a deal.
- Uncertainty ahead: With the Bank of England expected to cut rates in August instead of June, there’s more uncertainty about where rates will go in the coming months.
Why are rates going up?
The main culprit is rising swap rates. These are the rates banks use to lend to each other, and they’ve been climbing as the market adjusts to the latest economic data.
But isn’t the Bank of England going to cut rates?
While a cut is still expected, it’s now likely to happen in August rather than June. This has thrown a wrench into the mortgage market, with lenders now having to adjust to the new reality.
What can you do?
- Act quickly: If you’re thinking about buying or remortgaging, don’t wait around. Rates are likely to continue rising, and it’s better to lock in a deal sooner rather than later.
- Get expert advice: Talk to a mortgage broker who can help you find the best deal and understand your options.
- Shop around: Don’t just accept the first offer you get. Compare rates from different lenders to find the best deal for your circumstances.
The bottom line:
The mortgage market is in a state of flux. With rates on the rise, it’s crucial to be prepared and to act quickly. Don’t let the uncertainty of the market catch you off guard!
Here are some key things to remember:
- HSBC is raising fixed-rate mortgage rates, and other lenders are expected to follow suit.
- The Bank of England is now expected to cut rates in August, rather than June, causing uncertainty in the market.
- It’s important to get expert advice and shop around for the best mortgage deal before rates rise further.