Barclays Increases Mortgage Rates Following Inflation Concerns
Barclays, a leading lender in the UK, has made a significant move by raising its mortgage rates in response to the latest inflation data. This decision comes amidst speculation that the Bank of England may delay interest rate cuts until later in the year.
The banking giant unveiled a series of adjustments today, with a notable trend of rate increases, particularly for new mortgages. This marks the second occasion in three weeks that Barclays has implemented both price hikes and reductions simultaneously.
Inflation Figures and Market Response
The adjustments follow the release of recent inflation figures, showing a slower-than-anticipated decline to 3.2% in March. Of particular concern is the stubborn 6.0% services inflation rate, closely monitored by the Bank of England’s Monetary Policy Committee. These numbers have prompted traders to reassess their predictions regarding the timing of potential interest rate cuts. While June was previously favored, the likelihood now shifts towards August, with markets indicating a nearly 50% chance of the first cut occurring in the Autumn or later.
Barclays Mortgage Rates
Product Changes and Impact
Among the new rates introduced is a two-year fixed deal without a product fee and a 75% Loan-to-Value (LTV) ratio, now standing at 4.98%. Similarly, a five-year fixed deal under the same conditions has risen to 4.8%. These adjustments take effect immediately.
Aaron Strutt, the head of PR and communications at Trinity Financial, a Mayfair-based mortgage broker, highlighted that Barclays had previously offered more competitive pricing compared to its competitors. According to Moneyfacts, the average 2-year fixed residential mortgage rate remains at 5.81%, while the average 5-year fixed rate stands at 5.39%, unchanged from the previous day.
Stay Informed
For more information on this topic and other related news, you can visit the following links:
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