HSBC is putting up interest rates on all its fixed-rate mortgage deals. HSBC has said it will increase rates for all its fixed mortgages, just like Barclays and Natwest have done. The new rates for homes and Buy to Let mortgages will start on Wednesday 6 March.
The bank hasn’t said how much the mortgage rates will go up by. But the change will affect people who already have a mortgage with HSBC and are looking for a new deal, as well as people who want to buy a new home.
This is the second time since February that rates have gone up. It might be because of higher swap rates, which are what banks look at when they decide how much to charge for mortgages, reports the Express.
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Justin Moy, who is the boss at EHF Mortgages, wrote 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, who works at Lifetime Wealth Management, said that the low mortgage rates we saw earlier this year are now gone. She also said: “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.” Mortgage rates are going up, and this could be a problem for first-time home buyers and those who are already struggling with their current mortgage rates.
Lewis Shaw, the owner of Shaw Financial Services and a mortgage expert, 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 made changes to their account rules. Experts in the industry warn that these changes could mean homeowners have to pay more on their mortgages or when they renew 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.”
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