Barclays and Natwest, two high street banking giants, have announced new account rules in a slew of changes to its residential purchase, remortgage range, and Buy to Let range.
The bank stated: “These changes consist of increases and decreases.”
NatWest has also revealed rate changes. Both banks have confirmed that the new rates will be effective from today, Tuesday March 5.
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.”
He added: “How can any broker have certainty in their advice with rates liable to change with mere hours’ notice? This is more evidence of Consumer Duty Denied for the ordinary borrower.”, reports Birmingham Live.
Darryl Dhoffer from The Mortgage Expert said: “Yet more rate increases as we get closer to the Budget.”
He questioned: “You have to wonder if lenders increasing rates today have had a heads-up in advance of the budget. We need lenders to commit to a 24-hour pledge of notice, as the notice periods being given are not helping the consumer. Brokers are doing their best to help their clients but this kind of mayhem is doing the exact opposite.”
Industry experts have warned that many homeowners may end up paying more on their mortgages or when renewing their mortgages due to a recent flurry of interest rate changes, with some banks increasing rates and others cutting them.
Justin Moy of EHF Mortgage said: “Another mixed bag of rate increases, and a few reductions, from two of the larger high street banks, again with little time to make calls to borrowers who will potentially be affected. As a result, many could end up paying that little bit more for their mortgage or renewal.”
“An increase of just 0.1 percent will cost a lot more than the value of one percent off your income tax for most borrowers.”
Lewis Shaw of Shaw Financial Services said: “The speed and frequency at which lenders are currently changing their rates feel like an unpleasant rollercoaster ride, except no one can get off and you have to provided a bulk of documents just to get on.”
“One moment you’re hurtling downwards and the next your stomach is in your mouth as you race up to an unknown peak unsure where it’s going to stop.”
