HSBC, Halifax, and Coventry Adjust Mortgages After Bank Rate Hold
In response to the recent decision by the Bank of England to maintain the bank rate at 5.25%, several lenders, including HSBC, Halifax, and Coventry, are implementing changes to their residential fixed-rate mortgage deals.
HSBC has notified brokers of upcoming increases to its two, five, and ten-year fee-free remortgage fixed rates for borrowers with 40% equity or a deposit of less than 40%, effective tomorrow.
Simultaneously, the bank is reducing the costs of certain first-time buyer deals (at higher loan-to-values) and some product transfer fixed rates at higher LTVs for existing customers.
Halifax has also announced adjustments, cutting rates on a range of its first-time buyer fixed-rate deals at higher loan-to-value ratios starting February 6th. Notably, the five-year fixed rate for home purchases with a 10% cash deposit sees a reduction from 4.97% to 4.44% with a £999 fee.
Coventry Building Society is also making changes, providing notice of rate withdrawals from February 6th, with new deals at higher rates expected shortly after.
These adjustments reflect the evolving consensus that interest rates are likely to remain higher for an extended period. While some mortgage rates are being increased, lenders are also strategically reducing costs on selected deals to cater to specific borrower segments.
As the mortgage landscape adjusts to economic conditions, borrowers and brokers will need to stay vigilant for further changes in the market.
