Mortgage Rates on the Rise: What Does it Mean for Borrowers?
The mortgage market has been dealt a blow with the announcement that Halifax and BM Solutions are increasing their rates by up to 0.2%. This move is set to affect a wide range of products, including those for first-time buyers, homemovers, remortgages, and product transfers. The impact will be felt not only by individual borrowers but also by landlord borrowers.
Mortgage rates are on the rise
The news has been met with concern from mortgage brokers, who are warning of the potential consequences for borrowers. Justin Moy, managing director at EHF Mortgages, described the rate increases as “bad news for mortgage borrowers”. Stephen Perkins, managing director at Yellow Brick Mortgages, questioned the timing of the move, given Lloyds Banking Group’s recent announcement of a drop in profits.
Lewis Shaw, owner and mortgage expert at Shaw Financial Services, warned that the rate increases could have a ripple effect, with other lenders potentially following suit. Gary Bush, financial adviser at MortgageShop.com, described the move as “another nail in the coffin” for households.
Mortgage brokers are concerned about the impact of rate increases
Darryl Dhoffer, adviser at The Mortgage Expert, cautioned that smaller lenders may follow Halifax’s lead, while Harps Garcha, director at Brooklyns Financial, noted that the rate increases were not entirely unexpected, given recent events such as the rise in swap rates.
Ben Perks, managing director at Orchard Financial Advisers, offered a slightly more optimistic view, suggesting that the 0.2% increase demonstrated a willingness to lend. Elliott Culley, director at Switch Mortgage Finance, simply stated that “rate rises have become the new normal”.
Mortgage applications may become more challenging
As the mortgage market continues to evolve, it’s clear that borrowers will need to be prepared for further changes. With rates on the rise, it’s essential for borrowers to carefully consider their options and seek expert advice to navigate the complex landscape.
