Barclays and Halifax have pushed mortgage rates higher from today, with brokers cautioning borrowers that waiting for cheaper deals could prove an expensive mistake in what one described as "a classic snooze-and-you-lose market."
Both lenders have raised rates across portions of their mortgage ranges, continuing a wave of repricing that has seen borrowing costs rise steadily across the market over recent weeks.
Barclays and Halifax changes
Barclays is lifting rates on a selection of residential remortgage and existing customer reward products, while withdrawing a number of deals across its purchase, remortgage and reward ranges. Among the notable changes, its 4.66% two-year fixed remortgage deal for Premier customers with a £999 product fee will climb to 4.91%.
Halifax is increasing rates by up to 0.11% for homemovers and first-time buyers across two, three, five and 10-year fixed products. Its remortgage rates will rise by up to 0.10% across two, three and five-year fixes, while all of its 18-month fixed-rate remortgage products are being pulled entirely.
Brokers warn of hesitation costs
Emma Jones, managing director of Runcorn-based WhenTheBankSaysNo.co.uk, said: "My advice to anyone buying or remortgaging soon is to secure a deal early, as many lenders are currently withdrawing their cheapest products with little notice. With lenders increasing rates across the board, it's never been more important for buyers to be proactive and on the front foot."
Ranald Mitchell, director of Norwich-based mortgage broker Charwin Private Clients, said: "This is becoming a market where hesitation can cost borrowers real money. Barclays and Halifax are the latest major lenders to push rates higher, adding to a wider round of increases across the market as funding costs and swap rates remain under pressure.
"Borrowers and brokers need to be on their A-game. A rate available this morning can disappear tomorrow, and in a rising market there is real danger in waiting for something better that never arrives."
He added: "Anyone within six months of their mortgage ending should be reviewing options now. Secure a deal where appropriate, keep monitoring the market and move again if something better appears before completion. This is a classic snooze-and-you-lose market. Rates are shooting off in the wrong direction and borrowers who leave it late risk paying the price."
Stress and further rises expected
Aaron Strutt, product and communications director at London-based Trinity Financial, said the constant changes were now causing borrowers "a lot of stress." He said: "Barclays and Halifax have kicked off the week with more rate hikes. Hopefully the market will calm down soon because the changes have been constant and they are causing a lot of stress now."
Strutt noted that Halifax will only have a few sub-5% fixes after this change, available to borrowers with a 40% deposit. The lender's cheapest rates will be a 4.90% two-year fix, a 4.93% three-year fix and a 4.98% five-year fix. The bank also has a two-year tracker at 4.06%.
Adam Stiles, managing director of London-based Helix Financial Partners, indicated that additional increases were on the horizon. He said: "The rate hikes just keep coming. The Halifax and Barclays increases are not a surprise, and we expect more to come. The upside is they've given a bit of notice, where many lenders have been pulling rates with an alarming lack of notice, emphasising the volatility we are seeing in the market."
Product choice narrowing
Stephen Perkins, managing director of Norwich-based Yellow Brick Mortgages, urged borrowers to also consider the diminishing range of products rather than concentrating exclusively on rate rises. He said: "These changes are another reminder that borrowers need to watch more than just the headline rate. When lenders withdraw products as well as increase pricing, the choice available can narrow very quickly.
"A 0.10% increase may not sound dramatic in isolation, but if the most suitable deal disappears altogether the impact can be much greater. Anyone approaching the end of a fixed rate should review options early rather than assume today's product range will still be there in a few weeks."
Jamie Elvin, director of London-based Strive Mortgages, stated the "direction of travel is becoming increasingly clear." He said: "Rates are edging higher and, just as importantly, lenders are withdrawing products, which means borrowers can't assume today's options will still be available tomorrow. Anyone approaching the end of a fixed deal should be reviewing their position now rather than waiting for the market to improve.
"Securing a suitable rate early can provide a valuable safety net, while still leaving scope to reassess if a better option becomes available before completion. With Halifax withdrawing its 18-month fixes and increasing rates across two, three and five-year products, flexibility is becoming just as important as the headline rate. In this market, waiting on the sidelines could prove expensive."
Dariusz Karpowicz, director of Doncaster-based Albion Financial Advice, said the trend of recent weeks was proving increasingly difficult to overlook. He said: "The pattern of the last few weeks is hard to miss: lenders raising rates, SONIA swaps drifting up, and global uncertainty feeding both. Barclays moving a 4.66% two-year fix to 4.91% is the mild version of what is coming.
"Nothing on the horizon suggests relief, and that is the worry. If swaps hold where they are, today's pricing will look generous by November. Anyone within six months of their deal ending should secure something now and review again before completion. Waiting for a better rate that never arrives is the costly option."
