Several of the UK’s biggest lenders have raised rates on their mortgage products this week already, as speculation grows that the Bank of England is unlikely to cut base rate before the autumn.
From yesterday the NatWest hiked rates by up to 0.21 percentage points on selected new mortgage products and up to 0.22 percentage points on selected remortgage products.
The NatWest also announced new “high value” mortgages for loans above £2m. It said these mortgage offers, which are likely to mostly apply to properties in London, “enable us to offer a more tailored suite of products to different customer types”.
Santander has also introduced rate increases for fixed and tracker deals across its residential and buy to let offering.
In its new business range, residential fixed rates will be increasing by between 0.04% and 0.20% for both purchases and remortgages. And all new business large loan fixed rates will be increased by 0.10% and all buy-to-let fixed rates by between 0.05% and 0.25%.
In its product transfer range, Santander will be increasing residential fixed and tracker rates by between 0.04% and 0.20%, and selected buy to let fixed rates by between 0.05% and 0.25%.
Meanwhile Halifax has rated the maximum loan to value on its part interest-only and part capital repayment mortgages from 75% to 85%; the lender says this will allow customers who opt for a portion of their mortgage to be interest-only to be able to access higher overall LTV borrowing.
While the LTV for purely interest-only mortgages remains capped at 75% based on full criteria, the LTV for mortgages that involve the sale of the mortgaged property will not change.
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