Lenders raise rates ahead of BoE hike

At least a dozen mortgage providers have hiked rates, as the Bank of England looks set to raise interest rates.

Data from Moneyfacts shows many of the main lenders have started to edge rates up.

Family Building Society has scrapped its 1.99 per cent deal and replaced it with a rate of 2.19 per cent.  Atom Bank has increased fixed mortgage rates by as much as 0.6 per cent. Monmouthshire Building Society has added 15 basis points to its five-year 1.55 per cent deal.

Other changes include an increase of up to 0.4 per cent on selected fixed rates at Halifax, though it has increased its all incentive cashback from £250 to £750.

There has also been changes to rates at Newcastle, Coventry and Skipton building societies.

Moneyfacts finance expert Charlotte Nelson says: “Unfortunately, with rates at rock bottom levels, the only way from here is up.”

The rate hikes comes as the Bank of England looks increasingly likely to raise interest rates before the end of the year.

OnlineMortgageAdvisor director Pete Mugleston says: “We have certainly seen several high street lenders increasing rates across a number of their offerings. There is every reason to believe the lenders have been fuelled by Mark Carney’s recent comments.”

But Mugleston says there are still good deals to be found. Some specialist lenders, such as Aldermore, have even been reducing rates.

Moneyfacts analysis shows the current average two-year fixed deal is still lower than it was a year ago at 2.2 per cent.

Nelson adds: “After Carney’s speech last week there has been a real shift in the market, with rates starting to take an upward turn.

“Borrowers shouldn’t feel disheartened; there are many great low deals still on offer. But with rates starting to move they need to act fast to ensure they get the best deal.”

 

Comments
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  • Chris Hulme 4th October 2017 at 1:17 pm

    It’s so difficult to know whether this is just more failing forward guidance or is harking back to something I felt Eddie George did in his time as Governor where he intimated at rate rises ahead of meetings causing the country to react to a rate rise meaning he didn’t then need to increase rates at the MPC…
    Either way, it is difficult to cut through to any cause of inflation other than higher costs of imports due to the fallen GBP and seemingly a rise would be more hurtful than rates remaining where they are until Spring or Summer next year.

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