In a significant move, HSBC has announced wholesale rate hikes across its residential and buy-to-let mortgage product ranges. The bank’s decision, which takes effect tomorrow, will impact various fixed-rate terms for both purchase and remortgage.
Key Points:
- Rate Increases: HSBC’s new rates will primarily affect two, three, and five-year fixed-rate mortgages.
- Existing Customers: Existing HSBC customers seeking to switch their mortgages may also experience rate increases.
- Brokers’ Insights: Industry experts predict that other lenders might follow suit this week due to rising swap rates.
- Base Rate Expectations: The Bank of England’s base rate cut hopes have diminished, contributing to the upward trend in rates.
Industry Reactions:
- Ranald Mitchell, Director at Charwin Private Clients, acknowledges the reality of “higher for longer” rates, emphasising that these elevated rates are likely here to stay.
- David Stirling, Independent Financial Advisor at Mint Mortgages and Protection, advises borrowers not to wait for rate drops and instead take control by securing a favourable rate early.
- Simon Bridgland, Broker/Director at Release Freedom, echoes the sentiment, urging borrowers to initiate the process of arranging new deals promptly.
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