Halifax has raised selected mortgage rates by up to 0.15%, following Nationwide and other lenders in a week of repricing that experts warn is not finished. The bank increased selected two, three and five-year fixed purchase rates by up to 0.10% and extended completion dates across the range. For remortgage customers, selected two, three and five-year fixed products rose by up to 0.15%, with completion dates also extended.
Week of lender rate rises
This week Nationwide increased selected fixed and tracker rates by up to 0.21%, while Virgin Money will raise some fixed rates by as much as 0.20%. Barclays also increased its market-leading 4.75% two-year fixed mortgage to 5.05% and its 4.93% five-year fix to 5.03%. Experts told Newspage the changes reflected continued volatility in the mortgage market.
Jamie Alexander, mortgage director at Romsey-based Alexander Southwell Mortgages, said the market had not finished repricing. He added: "Halifax raising rates again is not a surprise given where swap rates have been heading, but it is another reminder of how quickly the mood has shifted. A few weeks ago lenders were competing hard on price."
Sixth rate change since September
Alexander noted this is Halifax's sixth rate change since September, saying: "That frequency tells you more than the percentage does. The market is repricing and it is not done yet. For anyone sitting on the fence waiting for rates to improve, the calculation has changed. Act now, review later if things settle. Waiting for a better number that may not come is not a strategy."
Aaron Strutt, product and communications director at London-based Trinity Financial, said: "Halifax is the latest in a long list of lenders to raise the cost of its mortgages over the last week. The bank has been undercutting many of its competitors especially in the higher earning premier current account holder space as it has been offering a 4.81% two-year fix, three-year fix at 4.80% and a 4.86% five-year fix."
Existing and new borrowers affected
Stephen Perkins, mortgage broker and managing director at Norwich-based Yellow Brick Mortgages, said the increases would affect existing borrowers as well as new ones. He revealed: "What stands out here is that Halifax isn't just increasing rates for new borrowers. Product transfer and further advance rates are rising too, so existing customers reaching the end of a deal aren't insulated from the wider repricing."
Ranald Mitchell, director of Norwich-based Charwin Mortgages, said: "Halifax is the latest major lender to turn the screw. These may look like small increases, but they are heading firmly in the wrong direction and they add up quickly on bigger mortgages. For home movers and first-time buyers already battling affordability, higher fixed rates are the last thing they need."
Borrowers urged to review options
Tracey Dixon, buy-to-let mortgage specialist and owner of Cardiff-based Pure Mortgage and Protection, said borrowers should review their options early. She explained: "Waiting for a cheaper mortgage can become an expensive gamble. Halifax's increases are another reminder that fixed rates don't simply follow the Bank of England base rate."
Elliott Culley, director of Hayling Island-based Switch Mortgage Finance, said: "Rates continue to trickle upwards as the uncertainty of the markets continue. A base rate increase in November is looking extremely likely as more bills are set to increase. The October budget will be the next big event and will have a significant impact on where rates could be headed moving into Q4 and 2027."
