Most Rates Up Again - optimism plummets amongst brokers and analysts

It’s been a torrid time for rates, going back up for HSBC, Santander, TSB, Virgin Money, NatWest and many other mainstream and specialist lenders. Only the Halifax appears to have moved in the other direction.

This broadly upward trend has taken its toll on the sentiment of brokers, who are no longer as buoyant as they were at the start of the year.

Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management says: “The rate euphoria of 2024 was short-lived, with lenders now increasing rates across the board. While there is such volatility in the mortgage market, advice is critical. Don’t procrastinate if your rate is ending in the next six months. Hopefully rates will start coming down again in the second quarter, but it is still advisable to secure the best rates possible today."

Darryl Dhoffer, advisor at The Mortgage Expert, comments: “Five year SWAP rates are up 0.3 per cent and two year SWAP rates are up 0.42 per cent on this time last year, so lenders are being cautious and having to reprice products. 

“Uncertainty still remains with borrowers, who are not making quick decisions with sudden movements in interest rates."

Ben Perks, managing director of Orchard Financial Advisors adds: “Hopefully this is a blip and the reductions will come again soon. Pressure is surely mounting on the Monetary Policy Committee to reduce the base rate at the next meeting. The economy and property market need stimulating and borrowers in particular need a confidence boost."

And Rohit Kohli, director at The Mortgage Stop, claims: “With swap rates increasing steadily over the past few days, it was inevitable that lenders would start to react. We are likely see more rate hikes as we head towards the next Bank of England rate decision and Spring Budget. What's crucial is how this will affect borrower confidence. Though enquiries are still at a high level, we do expect some people to put their plans on hold until they see rates fall again."

Simon Bridgland, Broker/Director at Release Freedom believes it’s not necessarily a long term problem. He says: “Give it a while and I think things should start to decrease again. Decreases are never in a straight line south. 

“Even with slight upward clicks on fixed money, it's still worthwhile for borrowers to get things arranged now. First-time buyers in particular find this time unsettling as it's never known for sure how many bumps are in the road to home ownership and to settling on a deal.”