HSBC and Nationwide have announced big increases to their fixed mortgage rates, piling more pain on beleaguered borrowers, writes Jo Thornhill.
Nationwide building society will increase its fixed rates by up to 0.35 percentage points from tomorrow (29 June). This includes fixed rates for new customers and existing customers looking to switch to a new deal, as well as those looking for additional borrowing and home movers.
Earlier today HSBC unveiled its new fixed rate mortgage range, which includes large increases to the rates on its popular two and five-year fixed rate remortgage deals. Two-year fixed rates for new customers have been increased by up to 0.8 percentage points, for example.
The bank offered market-leading fixed rates until yesterday, but following the Bank of England interest rate rise last week, and due to the high demand for its relatively low fixed rates, HSBC announced yesterday it would be increasing all fixed rates.
HSBC’s two-year fixed rate for remortgage borrowers (at 60% LTV) is now 5.79% (up from 4.99%) while its five-year rate (also 60% LTV) is 5.29% (up from 4.56%). Both deals have a £999 arrangement fee. Fixed rates at higher LTV ratios have seen similar increases.
It has also increased two, three and five-year fixed rates across the board, including for first time buyers, home purchase and home movers, buy-to-let and international mortgages, plus existing customers looking to borrow more.
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Source: www.forbes.com
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