After a raft of rate reductions at the beginning of November, the tide is now shifting towards higher deals for borrowers.
The last of the deals available below 4% have left the market, which has been attributed to higher costs for lenders.
David Hollingworth, associate director at L&C Mortgages, said: “The slew of rate changes in recent weeks has continued to push rates higher, reflecting the higher costs for lenders, as the market outlook for rates has edged toward a ‘higher for longer’ expectation.”
Hollingworth added: “Unwelcome as it is for borrowers, it’s important to note that there’s no sign of rates skyrocketing as they have in recent years.
“The Bank of England base rate is still expected to fall over time, but markets are questioning if the pace will be as rapid. Forecasting and perception changes frequently, but for now, borrowers should grab a rate whilst they can, to avoid missing out if the deal is subsequently withdrawn.”
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Nationwide Building Society
Nationwide was one of the lenders to remove its sub-4% rates and increase rates for new customers who are moving or remortgaging and for first-time buyers.
Its five-year fixed rate deal with a £999 fee increased from 3.94% to 4.14%, which is the same deal for those borrowers who are remortgaging on such a deal.
The mutual also reduced rates on its new business two-year tracker products by 0.25% to reflect last week’s interest rate cut by the Bank of England.
It also lowered rates on all 10-year fixed rate products by up to 0.11%, as well as select higher loan-to-value (LTV) two-year fixed rate products by up to 0.15%.
A Nationwide spokesperson said: “Nationwide is not immune to the current swap rate environment and the changes we’re making on our fixed rate range are reflective of that and the rate changes happening across the market.”
HSBC
HSBC announced a second round of rate increases within a fortnight on two-, three-, five- and 10-year fixed fee-saver and fixed standard deals, as well as on deals for existing residential customers who are borrowing more.
The lender upped rates on residential first-time buyer and homemover deals too, along with rates on residential remortgages.
Other HSBC products to rise include energy-efficient home and residential remortgage cashback deals, along with buy-to-let (BTL) switching and borrowing more, plus its BTL purchase and remortgage range.
The lender’s international residential and BTL ranges are also being affected by increases.
NatWest
NatWest has become the latest lender to increase its mortgage rates this week, with changes of up to 0.35%.
The mortgage rate changes will come into effect on 14 November and apply to select residential, BTL and green deals for new NatWest borrowers.
This includes changes to a number of sub-4% mortgage deals, such as the five-year fixed purchase product at 60% LTV with a £1,495 fee, which has gone up from 3.84% to 4.14%.
The corresponding mortgage with a £995 fee has been raised by 0.3% from 3.89% to 4.29%, while the fee-free option has gone up from 3.99% to 4.29%.
The five-year fixed purchase product at 75% LTV with no fee will be increased from 4.09% to 4.44%.
Increases have been made to purchase and remortgage deals fixed for two or five years, for standard and high-value borrowers, up to 90% LTV.
TSB
TSB added its name to the list of major lenders hiking rates, this time by up to 0.3% on two- and five-year fixed first-time buyer and homemover deals.
Rates increased by the same amount on two- and five-year fixed remortgage deals up to 80% LTV to stand at 5.34% and 4.84% respectively. Neither of those options include a fee.
On product transfers, rates rose by up to 0.2% on residential five-year fixed rates deals up to 75% LTV. A five year fix without a fee is available at 4.39%, and the rate is 4.24% with a £995 charge.
