HSBC has announced increases across the whole of its fixed rate range of mortgages, joining Barclays and Natwest.
The changes to residential and Buy to let mortgage product ranges will come into effect on Wednesday 6 March.
The bank has not confirmed the exact rise in mortgage rates but the changes will affect existing customers looking for a new deal as well as new home buyers.
These are the second set of increases since February and may be driven by the recent upward trend in swap rates, which determine the costs for lenders to provide mortgages.
Justin Moy, managing director at EHF Mortgages, posted on Newspage: “HSBC have joined Barclays and NatWest this week, with increases across their entire range of fixed rate deals, both residential and buy-to-let. Mortgage holders need a pick-me-up and the past six weeks or so certainly haven’t provided it.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said that a mortgage rate price war seen at the beginning of this year ‘is well and truly over’.
She added: “It’s now time for borrowers to stop procrastinating or waiting for the bottom to fall out of the market, and get their ducks in a row.
“If, by a miracle, rates start dropping again after the Budget, products can be changed, but if they don’t, the rates around today will be gone tomorrow.”
These hikes in mortgage rates spell disaster for both first time house hunters as well as those struggling to keep up with their current mortgage rates.
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, said: “It’s bad news for consumers and even worse news if you’re about to buy and haven’t sent all your documents to your broker.
“The timescales we’re currently getting on rate withdrawals are, in some cases, a couple of hours. If you snooze, you lose.”
This week both Barclays and Natwest implemented new account rules which industry experts warn could lead to many homeowners having to pay more on their mortgages or when renewing their mortgages.
Charles Breen from Montgomery Financial told Newspage: “Lenders are flouting Consumer Duty rules. Rate changes with little, if any notice, are fuelling financial fear in mortgage holders across Britain.
“These lightning strike announcements are leaving both brokers and consumers reeling.”
