(qlmbusinessnews.com Tues. 23rd April, 2024) London, UK —
Mortgage Rates Surge as Bank of England Rate Cut Expectations Recede.
Homeowners across the UK are facing the sting of increased mortgage rates as major banks adjust their pricing amid shifting expectations regarding the Bank of England's interest rate decisions.
Starting from Tuesday, Barclays, HSBC, and NatWest are all rolling out hikes in costs on fixed-rate mortgage deals.
The anticipation of a sooner-than-expected rate cut by the Bank of England had previously kept mortgage rates low. However, recent developments have pushed back these expectations.
Barclays, in particular, is implementing its second rate increase in just a week, with a 0.1% rise across various mortgage products.
NatWest is following suit, announcing a 0.1% hike in some two and five-year “switcher” deals for existing customers.
Although HSBC confirmed rate increases, specific details on the extent of the hikes were not disclosed.
Building societies are also in the mix, with Leeds Building Society and the Co-op both adjusting their rates upwards.
Leeds Building Society is increasing fixed rates on selected products by up to 0.2%, affecting both new and existing customers. Similarly, the Co-op is raising rates on some fixed deals by as much as 0.41%, while also reducing rates on other deals by 0.07%.
According to Moneyfacts, the average two-year fixed mortgage rate is currently at 5.82%, while the average five-year fixed rate stands at 5.40%.
Broker Justin Moy from EHF Mortgages warns that while a 0.1% increase may not significantly impact those with smaller mortgages, homeowners with larger loans, £300,000 or more, will certainly feel the pinch.
The uncertainty surrounding the Bank of England's future interest rate decisions, influenced by inflation data and global economic events, is causing turbulence in the mortgage market, leading to concern and frustration among borrowers and brokers alike.
Chancellor Jeremy Hunt's recent remarks underscore the interconnectedness of global financial markets, highlighting how developments in the US can reverberate across the UK, impacting mortgage rates and homeowners nationwide.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
