According to a national mortgage broker, all of the major lenders have now pulled their sub-4% mortgage rates from the market, in a new blow for borrowers.
L&C Mortgages said that fixed rates are rising and deals below 4% are disappearing from the market again.
It noted that Barclays and Natwest ‘are the latest high street mortgage lenders to announce an increase to their fixed mortgage rates upwards’. The moves followed similar rate increases this week from Santander, HSBC, Nationwide and TSB amongst others.
David Hollingworth, associate director at L&C Mortgages said: “The slew of rate changes in recent weeks has continued to push rates higher, reflecting the higher costs for lenders, as the market outlook for rates has edged toward a ‘higher for longer’ expectation.
“A number of lenders managed to hold fixed rates below 4%, until now. As sharper rates have fallen away an air of inevitability was building and now all major UK lenders’ fixed rates have once again edged back above 4%.”
No return to high rates
Despite the inching up of mortgage rates, most experts believe that we will not return to the high rates that followed the disastrous mini-budget of 2022.
Hollingworth agrees: “There’s no sign of rates skyrocketing as they have in recent years. The Bank of England base rate is still expected to fall over time, but markets are questioning if the pace will be as rapid.
“Forecasting and perception changes frequently but for now borrowers should grab a rate whilst they can, to avoid missing out if the deal is subsequently withdrawn.”