As Andy Burham officially become Britain’s new Prime Minister, there was bad news for borrowers.
Three of the big lenders announced they would be increasing mortgage rates.
Halifax, HSBC and Barclays all announced increased interest rates from this morning.
Mortgage rates
It follows Trump’s launching a new wave of strikes in Iran, while at home, the King appointed a new Prime Minister.
Hina Bhudia, Partner at Knight Frank Finance, says: “Halifax, HSBC and Barclays all notified brokers of rate increases taking effect.
“Up until the end of last week, the market had been relatively calm, with borrowers benefiting from a range of competitively priced tracker and fixed rate products.
“However, a sharp rise in swap rates, driven by heightened geopolitical tensions and the escalating conflict in Iran, has prompted lenders to reprice.
“In some cases, the increases are significant, highlighting how quickly uncertainty in global markets can feed through to mortgage pricing.”
A sharp rise in swap rates, driven by heightened geopolitical tensions and the escalating conflict in Iran, has prompted lenders to reprice.”
The changes include Halifax increasing its rates by as much as 0.2%, affecting two, three and five-year fixed rates mortgages for homemovers and first-time buyers.
It means the removal of Halifax’s sub-4% mortgage rates.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Swap rate volatility during the past week has led to a number of lenders repricing upwards, with others expected to follow suit.
“Re-escalation of the conflict in the Middle East has led to the jump in Swaps, rather than domestic political uncertainty, but there could be a bumpy ride ahead, which is the last thing the new Prime Minister needs.”