It’s bad news for anyone thinking about getting a mortgage, with two major lenders, TSB and Skipton, raising their rates. This means you’ll be paying more to borrow money to buy a home.

TSB has announced it’s increasing the rates on some of its most popular mortgages, making it more expensive for first-time buyers and those looking to move.

Starting tomorrow, the bank’s two and five-year fixed rate deals for people borrowing up to 95% of the value of their home will be more expensive.

Here’s the breakdown:

• Two-year fixed rate: The rate is going up to 5.19% (with a £995 fee) for those borrowing 75% of the value of their home. This is a big jump from the previous rate of 4.99%.
• Five-year fixed rate: The rate is rising to 4.79% (with a £995 fee), up from 4.64%.

Why Are Rates Going Up?

These increases are part of a wider trend as lenders are reacting to changes in the financial markets. The Bank of England, which sets interest rates in the UK, is expected to keep rates high for longer.

This has caused the rates banks charge each other to go up, which means mortgage rates are also rising.

Skipton Follows Suit

Skipton Building Society is also increasing rates, including its popular 100% LTV Track Record mortgage for first-time buyers. This rate is going up from 5.55% to 5.79%.

Skipton is also cutting some of its two-year fixed rates, so there might be some good deals to be found if you need a shorter-term mortgage.

What Does This Mean for You?

If you’re in the market for a mortgage, it’s important to shop around and compare rates. Things are changing quickly, so you need to act fast to find the best deal.

Talk to a mortgage advisor to see what options are available to you, and make sure you understand all the costs involved.