“The rate dust has not yet settled following Labour’s shake of the fiscal snow globe”

"Within hours of the Budget, Virgin Money announced increases to their rates, although at the same time Accord mortgages announced reductions. This shows that the rate dust has not yet settled following Labour's shake of the fiscal snow globe. Swap rates over the coming days should reveal the direction of travel ahead of the Bank of England base rate decision next week."

"With Santander’s rate cuts of up to 0.36% on fixed mortgages, lenders are clearly competing despite a volatile market. The spike in 10-year gilt yields post-Budget signals underlying uncertainty, so these reductions may be short-lived if conditions shift. For new borrowers, now may be the time to lock in a favourable rate, as mortgage prices could fluctuate in the weeks ahead."

"Rachel Reeves’ tax increases are swiftly coming home to roost, and the timing couldn’t be worse. As if the market wasn’t already volatile enough, we now see lenders like Virgin Money responding to Labour’s Budget by hiking mortgage rates. With rates rising with only a few hours’ notice, landlords and homeowners alike are left scrambling to absorb the shock. It's remarkable how little foresight was applied here. Did anyone in government consider the ripple effect these tax changes would unleash? The impact on housing affordability and investment is unmistakable, too. For a government that claims to champion working people, Labour’s approach appears staggeringly tone-deaf. By layering tax increases onto an already overheated market, they’re practically guaranteeing that housing costs will climb even higher. This short-sightedness is likely to put even greater strain on households and landlords struggling to keep up with rising costs."

"Virgin Money’s decision to raise rates right after the Budget announcement feels like ill timing, particularly when many are watching closely for economic stability signals. At this point, it’s too early to say if this move will spark a broader industry shift or simply reflect Virgin’s own strategic response. Mortgage holders and those looking to borrow will be keen to see whether other lenders follow suit. But for now, patience is key; it’s important to observe how the market reacts and whether this adjustment becomes a trend or remains an isolated decision."

"Virgin Money’s decision to hike mortgage rates right after the Budget is an intriguing move, and it's likely that other lenders will adjust their own rates as they digest the Budget’s impact. Notably, Virgin also raised their buy-to-let rates, though the extra stamp duty on second properties already adds a significant burden for landlords. At this stage, there are more questions than answers. Whether rates will trend up or down remains to be seen."

"Gilt yields and mortgage rates continue to fluctuate as the dust settles following the Austerity Budget. Santander were among the first to react with cuts while Virgin went the other way. This divergence suggests we will not see a normalised rate environment until after the market has clarity on the US election and the Monetary Policy Committee decision during the next 2 weeks."

"Santander are flying into the wind from tomorrow and offering borrowers some respite from the last few weeks of turbulence in the mortgage rate market. The reality of yesterday's Budget may not yet have hit home and next week we see the US election and the Bank of England make their decision on interest rates, so I can't help feel that we are still in for a bit of a rocky ride over the next few months. Santander have priced competitively to suck up some quick business before we buckle up for turmoil in the run-up to the festive period, so borrowers should get onboard while they can."

"This is welcome news from Santander, especially when the market is still so volatile. Hopefully the reductions won’t be short-lived and we don’t get a email next week reversing the reductions. This may be to attract new business rather than because the market is improving."