Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Barclays, Halifax and BM Solutions raise rates by up to 30bps
Barclays, Halifax and BM Solutions have announced another round of rate hikes, with some deals jumping by as much as 30 basis points. The changes take effect tomorrow, with buy-to-let rates at BM Solutions among those affected.
What is changing at each lender
At Barclays, a 10-year fixed at 60% LTV with a £999 fee will rise by 30bps, from 5.12% to 5.42%. The lender is also increasing some of its more popular two, three and five-year fixes by up to 25 basis points, including a number of remortgage deals. A two-year fixed remortgage at 60% LTV with a £999 fee will climb from 4.69% to 4.94%, a three-year fixed remortgage at 60% LTV with a £999 fee will rise from 4.67% to 4.92%, and a five-year fixed remortgage at 75% LTV with a £999 fee will jump from 5.07% to 5.32%.
At BM Solutions, buy-to-let rates are rising by up to 25 basis points tomorrow, a change landlords and letting agents tracking financing costs in the rental market will watch closely.
Halifax is increasing its home mover and first-time buyer rates by up to 11bps, while remortgage, product transfer and further advance rates are rising by up to 10bps.
Wider market context
The moves follow rate increases from other lenders. TSB is making further rate increases of up to 25bps after repricing other deals last week, while Kensington and Leeds Building Society are also scheduling price rises for tomorrow.
Last week, Moneyfacts revealed that the average five-year fixed rate has reached its highest level since October 2023, in the aftermath of the Liz Truss mini-budget.
Trinity Financial product and communications director Aaron Strutt said Barclays and Halifax had kicked off the week with more rate hikes, and that he hoped the market would calm down soon because the changes have been constant. He noted that Halifax will only have a few sub-5% fixes after the change, available to borrowers with a 40% deposit, with its cheapest rates set to be a 4.9% two-year fix, a 4.93% three-year fix and a 4.98% five-year fix, alongside a two-year tracker at 4.06%. He also observed that Halifax is pulling its 1.5-year fixes, which had been popular with borrowers who expected rates to get cheaper over the near term and did not want to lock in for two or five years.
Source: Mortgage Strategy