Mortgage rates are inching up again after lenders hiked prices against a backdrop of political uncertainty.
On Tuesday HSBC announced a ‘wide range’ of increases to its residential mortgage rates and yesterday Santander announced hikes of up to 0.13% on residential and buy-to-let fixed rate mortgages.
They are not the only lenders making price increases with experts attributing the hikes to the uncertainty within the government, including concerns over the November Budget.
High gilt yields, which mean the interest paid on government borrowing at the moment is high, have also had a knock-on effect on mortgage rates.
The advice to borrowers who are looking for a mortgage deal is to secure a rate as soon as possible.
Babek Ismayil, founder at homebuying platform OneDome, speaking to the Newspage agency, said: “What started as a trickle is now turning into a stream of mortgage rate increases.
“Though not huge increases, rates, for now at least, are moving in one general direction and that’s up. Borrowers need to get in touch with a good broker to lock in rates before they disappear.”
However, Ranald Mitchell, director at Norwich-based Charwin Mortgages, also speaking to Newspage, said while price hikes were not as dramatic as those experienced in recent times, borrowers should still act fast.
“While this is bad news for borrowers hoping to see further cuts, rates are still sitting in a relatively good place compared with recent years,” he said.
“With no guarantees on where the market will head next, those in need of a mortgage should act sooner rather than later as delaying could mean paying more.
“The clear message is that the best deals are often short-lived, and borrowers who wait for certainty risk missing out.”
The Moneyfacts Average Mortgage Rate at close on Thursday 11 September was 5.01% compared to 5% a week ago. On Monday it edged up to 5.02% but has dipped down again.
Rachel Springall, finance expert at Moneyfacts, said this was as a result of a mixture of lender price hikes and decreases.
