Urgent Update: Fixed-Rate Mortgage Prices increasing, Reports Moneyfacts

Most economists are predicting that we will not see a reduction in the UK base rate now until August. At the start of this year, we witnessed lenders slashing rates due to positivity in the market and lender swap rates reduced, plus what some called a mortgage price war.

However, we are now seeing a different trend and during the latter part of February, there has been a notable change of direction for fixed-rate prices. Many of the market-leading lenders have this week announced rate increases, with just a couple of lenders opting to reduce some deals.

Additionally, several Building Societies have also introduced new fixed-rate deals, contributing to an overall increase in 2 and 5-year fixed-rate mortgage pricing.

Rachel Springall, a finance expert at Moneyfacts, highlighted some of the key players in this week’s fixed rate adjustments. Major brands such as HSBC, Santander, TSB, NatWest, RBS, and Virgin Money have all raised their fixed rates.

Building Societies have also been active in this regard, with the Coventry Building Society, Principality Building Society, Yorkshire Building Society, Furness Building Society, Tipton & Coseley Building Society, Newcastle Building Society, Skipton Building Society, Nottingham Building Society, and West Bromwich Building Society amongst those making increases in selected fixed rates. The trend of fixed rate increases extends further to other lenders as well.

What is causing the change in direction? Some lenders attribute the fluctuations to the volatile swap rate market. Over recent weeks rates have increased which is a factor influencing lenders to increase fixed rates.

Lenders are anticipated to maintain a cautious approach to repricing in the coming weeks. However, Springall commented that borrowers should not be discouraged from seeking out new deals.

Springall emphasised the importance of acting swiftly to secure an attractive package, as many lenders may withdraw deals in response to a surge in applications. She also points out that seeking advice from a mortgage broker to explore available options is crucial.

In summary, while fixed-rate pricing increases are becoming more prevalent, borrowers are encouraged to remain proactive in their search for favourable mortgage deals and to seek professional guidance in navigating a turbulent market.

Why try and second guess the markets on your own, a lot is going on in the world with elections, conflicts, inflation, and a cost-of-living crisis in the UK. Let MMPE help take some of the strain, by assisting you with a managed mortgage service to deliver the best rates achievable.

Home Buyers

It’s not all bad news for potential home buyers with a substantial deposit. Coventry Building Society has recently introduced a five-year fixed deal, with an interest rate of 4.36%. This deal is available to customers making a house purchase, with a loan-to-value ratio of 65%. Additionally, it comes with a free valuation and has a product fee of £999.

A recommendation from MMPE if you are actively house hunting, is not to commit totally to one lender. With rates and deals changing almost daily, maintaining a relationship with your broker that can refresh your research quickly is key. A deal that is top of the pile one day with a particular lender will not necessarily be the right deal, or lender at the time of offer or application.

MMPE can provide buyers with independent mortgage research and advice and a quick and efficient mortgage agreement in principle service.

Our free-to-download app provides buyers with an affordability calculator, which will produce an accurate assessment of the amount lenders would consider lending.

Sussed, also provides a mortgage sourcing tool, giving access to all the latest rates in real-time.

Mortgage deal ending or looking to remortgage?

If you have a mortgage deal ending in the next 6 months or are thinking about a remortgage, take advantage of a broker service, and lock in a new deal. This will commit the lender to the offer they make, however as the mortgagee, if the market changes, then you are free to take advantage of positive changes.

MMPE provides a managed mortgage review service, whereby if rates drop before completion, as your broker we work to make the required changes to secure the lower rate deal.

During January & February 2024, MMPE has administered and made savings for clients by switching deals by more than £78,000.

Taking the time to review your options now takes a little bit of time and effort (not much), but by locking in a rate now, you know this will be the worst-case scenario. If rates subsequently improve, MMPE work with you to make the changes. However, if rates increase further before completion, you can breathe a sigh of relief as you have put the work in to benefit from lower pricing and savings.

Sussed our mortgage app is also a great tool for mortgagees, the app has built-in reviews for when a deal is ending. “Early review” is an app feature that works continuously in the background and if a deal becomes available where you can save money inclusive of any early repayment charges. The app will flag the opportunity to discuss with MMPE.

Download sussed here IOS / Andriod

If you would like further information or to discuss options, contact one of our Independent Mortgage Advisor.

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My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register http://register.fca.org.uk/ under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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