Summary:
Santander and HSBC are adjusting their mortgage rates, with Santander increasing most residential new business fixed-rate deals and re-pricing select landlord remortgage offers. HSBC is raising rates on two- and five-year residential and buy-to-let fixed mortgages. These changes impact first-time buyers, homemovers, and landlords, reflecting broader market trends in the UK mortgage landscape.
What This Means for You:
- First-time buyers may face higher costs, particularly for 85%-95% LTV loans, with rates increasing by up to 10 basis points.
- Landlords should review remortgage options carefully, as some rates are rising while others, like 60% LTV two-year fixes, are decreasing.
- Consider locking in fixed-rate deals soon to avoid potential further increases in mortgage pricing.
- Monitor market trends and lender updates closely, as rate changes may continue in response to broader economic conditions.
Original Post:
Santander will lift most of its residential new business fixed-rate deals, as selected landlord remortgage offers reprice in both directions on Tuesday.
While HSBC will raise a range of two- and five-year residential and buy-to-let fixes on Monday.
Highlights from Santander include:
- First-time buyer – all 85% and 90% loan-to-value two- and three-year fixed rise by up to 10 basis points. All 85%, 90% and 95% LTV five-year fixes rise by up to 5bps. All 75% LTV 10-year fixes by 10bps
- BTL remortgage – all 65% and 75% LTV five-year fixes rise by 6bps
- Residential fixed rates – selected 60% and 75% LTV two-year fixes rise by 2bps. All 60% LTV five-year fixes rise by up to 5bps. Selected 75% LTV five-year fixes rise by 2bps.
- BTL remortgage – all 60% LTV two-year fixes fall by 6bps
Meanwhile, HSBC said two- and five-year fixes will rise for UK residential FTB and homemover ranges, residential remortgages and products for properties with an energy performance certificate rating of C and above.
Pricing has also gone up for BTL purchase and remortgage products, as well as deals for international residential and BTL borrowers.
Changes will apply up to 95% LTV, the bank said in a note, without giving pricing details.
Extra Information:
For further insights into mortgage rate trends, check out Moneyfacts’ latest mortgage rate report. Additionally, the Bank of England’s Monetary Policy Report provides context on how broader economic policies influence mortgage rates.
People Also Ask About:
- How do interest rate changes affect mortgage rates? Interest rate changes directly impact lender pricing and borrowing costs, influencing mortgage rates.
- What is a loan-to-value (LTV) ratio? LTV is the percentage of the property value being borrowed, affecting mortgage eligibility and rates.
- Are fixed-rate mortgages better than variable-rate mortgages? Fixed-rate mortgages offer stability, while variable rates can fluctuate with market conditions.
- How can I improve my chances of securing a mortgage? Maintain a strong credit score, save for a larger deposit, and reduce existing debt.
Expert Opinion:
“The recent adjustments by Santander and HSBC underscore the dynamic nature of the UK mortgage market. Borrowers should act swiftly to secure favorable rates, as economic uncertainties may lead to further volatility in lending conditions.”
Key Terms:
- Residential mortgage rates
- Buy-to-let remortgage offers
- Loan-to-value ratio (LTV)
- Fixed-rate mortgage deals
- UK mortgage market trends
ORIGINAL SOURCE:
Source link
Automatic Mortgage Calculator
Welcome to our Automatic Mortgage Calculator 4idiotz! Please just add your figures in the correct sections below and the Automatic Mortgage Calculator will automatically calculate the results for you and display them at the bottom of the page.
