Santander has announced mortgage rate increases just 24 hours after Halifax made similar moves, signalling a clear upward trend in the housing market.
The bank is hiking most fixed rates and selected tracker rates by 0.15%, with some products seeing increases of 0.19%. The changes affect new business and some residential fixed rates in its product transfer range.
Expert Reaction
Anthony McQuilliam, director of Essex-based Bolt Mortgages, warned: "When Santander follows Halifax within 24 hours, that's not a coincidence, that's a signal."
Experts say the timing of rate announcements is putting enormous pressure on both borrowers and brokers. Many lenders are issuing notices at 3pm, forcing brokers to work until midnight to secure deals.
Reasons Behind the Rise
The increases are being blamed on rising oil prices amid Middle East tensions, which threaten to fuel inflation. Emma Jones from Whenthebanksaysno.co.uk said markets are "increasingly nervous about inflation".
Brokers are urging anyone considering a mortgage or renewal in the next six months to act immediately. Stephen Perkins from Yellow Brick Mortgages warned of the "waiting penalty" for those hoping rates might fall.
