HSBC hikes mortgage prices for second time in a week as chaos escalates
HSBC will hike their prices for the second time in less than a week
HSBC is increasing the cost of mortgage borrowing for the second time in less than a week against a backdrop of predictions that the Bank of England could raise base interest rates from 4.5 per cent to five per cent next week.
The move will affect new customers and existing ones looking for a new product when their existing one comes to an end, or otherwise seeking a remortgage.
The bank told brokers that it will stop offering mortgages at its current rates at 5pm today and the new prices will be announced tomorrow morning.
The new rates will hit millions of homeowners whose existing fixed deals are set to expire soon.
The new rates will hit millions of homeowners whose existing fixed deals are set to expire soon
PA
Coventry Building Society is also withdrawing rates for new residential and buy-to-let customers along with product transfer deals for existing customers.
It is also suspending the sale of tracker deals indefinitely from 8pm on June 15.
It will launch its new range of deals on Friday morning, with brokers saying they are braced for higher rates.
Santander has relaunched its range this morning after pulling out of the market for new residential and buy-to-let deals on Monday.
Some fixed rates have increased by up to 0.65 per cent.
It is offering a five-year fixed rate at 4.83 per cent with a £999 fee, but with the market so volatile brokers predict the bank could increase rates again.
Nick Mendes at broker John Charcol, said: “Markets now expect the Bank of England will raise interest rates by half a percentage point to five percent next week.
“We’ve seen big leaps in swap rates reflecting this sentiment.
The Bank of England’s monetary policy committee will meet on June 22
PA‘I’d be surprised if any lender could now afford to offer a two or five-year fixed rate at under five percent” he told Forbes.
Swap rates are the interest rates at which the banks lend to each other, and are used by banks and building societies to price the fixed mortgage rates they offer their customers.
The Bank of England’s Monetary Policy Committee is due to meet next Thursday.
Earlier this week, MPC member Jonathan Haskel said he couldn’t rule out the possibility of two more rate rises this year as the bank tries to combat stubbornly high inflation.