10 July: Virgin, HSBS Respond To Rising Wholesale Borrowing Costs
Virgin Money is increasing selected fixed rates across its range – its third rate increase since the Bank of England raised interest rates on 22 June. It follows a further increase to fixed rates by HSBC, as lenders adjust to new market conditions, writes Jo Thornhill.
Swap rates – the interest rates at which banks lend to each other and which determine the cost of mortgages – climbed steadily last week with many economists now predicting the Bank of England Bank Rate could reach 6.5% this year (Bank Rate is currently at 5%).
Virgin’s rates will increase from tomorrow (11 July) on some of the bank’s most popular fixed rate deals for remortgage, home purchase and product transfers. A range of its buy-to-let fixed rates will also rise in cost.
The bank’s two-year fixed rates for remortgage will rise by 0.35 percentage points with new deals starting at 6.26%, while five-year rates are set to rise by 0.3 percentage points, with pay rates starting at 5.53%. Buy-to-let fixed rates for remortgage will increase by up to 0.35 percentage points to start at 5.36%.
Among product transfer deals – for existing Virgin customers looking for a new deal – its fixed rates will rise by up to 0.4 percentage points with new deals starting from 5.18%. Buy-to-let product transfer deals are also going up by the same amount with new deals starting at 5.53%.
Source: www.forbes.com
ENB
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