UK households warned to make ‘three moves’ now as banks change mortgage rules
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UK households have been told to make three moves TODAY as more and more lenders hike rates. Mortgage rates are being hiked by high street banks nationwide, with some of the biggest – NatWest, Santander and more – announcing uplifts.
Barclays, HSBC, Accord and The Co-Operative Bank all increased their rates last week, too. Karen Noye, mortgage expert at Quilter, said: “We are continuing to see lenders increase mortgage rates due to an uptick in swap rates, which could come as a blow for those prospective buyers who have been holding out in the hopes of lower rates.
“When combined with ongoing cost of living pressures, many prospective buyers will continue to face an uphill battle when it comes to affordability, particularly those first-time buyers who will also likely have found it much harder to save enough money for a deposit.” Nicholas Mendes, from mortgage advisers John Charcoal, said: “Lenders in recent days have been quick to adjust there pricing in line with competitors to avoid being an outlier and impact on service levels.
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“Also, Swaps are influenced by market sentiment, until we see a bank rate reduction, we will likely see further periods of changes.” Nicholas Mendes, technical manager at broker firm John Charcol, told the Sun newspaper to debate the right kind of mortgage for you: tracker vs fixed.
Nick said that while each borrower’s situation is unique, fixed-rates are “often the best choice”. He also explained how to get the best deal on your mortgage, including through larger deposits, credit scores, salaries and more.
Finally, beware of standard variable rate (SVR) mortgages. He said to the Sun: “SVRs are usually three per cent to four per cent higher than fixed rates. There will likely be alternative deals with the existing lender which would be more cost effective.”
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