BARCLAYS and Halifax are hiking mortgage rates again from today as brokers warn borrowers that waiting for cheaper deals could now prove costly in “a classic snooze-and-you-lose market”.
The two major lenders increased rates across parts of their mortgage ranges, continuing a run of repricing that has seen borrowing costs climb across the market in recent weeks.
Barclays is increasing rates on a selection of residential remortgage and existing customer reward products, while also withdrawing a number of deals across its purchase, remortgage and reward ranges.
Among the changes, its 4.66% two-year fixed remortgage deal for Premier customers with a £999 product fee will increase to 4.91%.
Halifax is raising rates by up to 0.11% for homemovers and first-time buyers across two, three, five and 10-year fixed products.
Its remortgage rates will rise by up to 0.10% across two, three and five-year fixes, while all of its 18-month fixed-rate remortgage products are being withdrawn.
The changes come after weeks of increases across the mortgage market, with brokers warning that borrowers can no longer assume a deal available today will still be there tomorrow.
Emma Jones, Managing Director of Runcorn-based WhenTheBankSaysNo.co.uk, said: “My advice to anyone buying or remortgaging soon is to secure a deal early, as many lenders are currently withdrawing their cheapest products with little notice.
“With lenders increasing rates across the board, it’s never been more important for buyers to be proactive and on the front foot.”
Ranald Mitchell, Director at mortgage broker Charwin Private Clients, said: “This is becoming a market where hesitation can cost borrowers real money.
“Barclays and Halifax are the latest major lenders to push rates higher, adding to a wider round of increases across the market as funding costs and swap rates remain under pressure.
“Borrowers and brokers need to be on their A-game. A rate available this morning can disappear tomorrow, and in a rising market there is real danger in waiting for something better that never arrives.
“Anyone within six months of their mortgage ending should be reviewing options now. Secure a deal where appropriate, keep monitoring the market and move again if something better appears before completion.
“This is a classic snooze-and-you-lose market. Rates are shooting off in the wrong direction and borrowers who leave it late risk paying the price.”
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, said the constant changes are now causing borrowers “a lot of stress”.
He said: “Barclays and Halifax have kicked off the week with more rate hikes. Hopefully the market will calm down soon because the changes have been constant and they are causing a lot of stress now.
“The Barclays remortgage rates were pretty cheap, so it isn’t a surprise they went up. The main change is to the 4.66% two-year fix for Premier customers with a £999 product fee, which is increasing to 4.91%.
“Halifax will only have a few sub-5% fixes after this change and they are available to borrowers with a 40% deposit. The lender’s cheapest rates will be a 4.90% two-year fix, a 4.93% three-year fix and a 4.98% five-year fix. The bank also has a two-year tracker at 4.06%.
“It is interesting Halifax is pulling the 1.5-year fixes, because these rates were popular with borrowers who thought rates were going to get cheaper over the near term and did not want to lock in for two or five years.
“Barclays still has the 3.99% two-year best buy tracker.”
Adam Stiles, Managing Director at London-based Helix Financial Partners, said further increases are expected.
He said: “The rate hikes just keep coming. The Halifax and Barclays increases are not a surprise, and we expect more to come.
“The upside is they’ve given a bit of notice, where many lenders have been pulling rates with an alarming lack of notice, emphasising the volatility we are seeing in the market.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, said borrowers should also pay attention to the shrinking choice of products rather than focusing solely on rate increases.
He said: “These changes are another reminder that borrowers need to watch more than just the headline rate. When lenders withdraw products as well as increase pricing, the choice available can narrow very quickly.
“A 0.10% increase may not sound dramatic in isolation, but if the most suitable deal disappears altogether the impact can be much greater.
“Anyone approaching the end of a fixed rate should review options early rather than assume today’s product range will still be there in a few weeks.”
Jamie Elvin, Director at London-based Strive Mortgages, said the “direction of travel is becoming increasingly clear”.
He said: “Rates are edging higher and, just as importantly, lenders are withdrawing products, which means borrowers can’t assume today’s options will still be available tomorrow.
“Anyone approaching the end of a fixed deal should be reviewing their position now rather than waiting for the market to improve.
“Securing a suitable rate early can provide a valuable safety net, while still leaving scope to reassess if a better option becomes available before completion.
“With Halifax withdrawing its 18-month fixes and increasing rates across two, three and five-year products, flexibility is becoming just as important as the headline rate. In this market, waiting on the sidelines could prove expensive.”
Dariusz Karpowicz, Director at Albion Financial Advice, said the pattern of recent weeks is becoming difficult to ignore.
He said: “The pattern of the last few weeks is hard to miss: lenders raising rates, SONIA swaps drifting up, and global uncertainty feeding both.
“Barclays moving a 4.66% two-year fix to 4.91% is the mild version of what is coming.
“Nothing on the horizon suggests relief, and that is the worry. If swaps hold where they are, today’s pricing will look generous by November.
“Anyone within six months of their deal ending should secure something now and review again before completion. Waiting for a better rate that never arrives is the costly option.”
