ATIONWIDE Building Society is raising the cost of some of its most popular mortgages today, the latest sign that home loans are getting more expensive.
As the city bets on an interest rate hike, possibly as early as next month, lenders are already forgoing their cheapest offers and replacing them with more expensive ones.
As the market remains competitive, financial advisers believe now is the time to strike the cheapest deal possible, given that banks’ base rates are set to drop from the current low of 0.1% to perhaps 1% by next summer.
++ The selected two, three and five year fixed rate up to 75% LTV will increase to 0.25%
++ Rates for existing members who move, switch to a new offer or are looking for an additional advance of up to 75% LTV will be increased up to 0.22%
Some other rates have in fact been lowered, an obvious challenge for the mutual to its listed competitors.
Yesterday it emerged that Barclays and Halifax, the largest mortgage lender owned by Lloyds Bank, had changed their rates. He announced the moves to mortgage brokers but not to the general public.
Critics of the bank note that they advanced long before an actual Bank of England rate hike.
Banks say loan financing is already expensive due to the city’s forecast of a rate hike.
Elliot Nathan of senior mortgage broker John Charcol said: “Banks are going to start raising their fixed rates once we see the Bank of England raise the base rate associated with the rising inflation rate. Once we start to see the first rate hike, the banks will follow suit and we may not see interest rates as low as these again. For any variable rate borrower, now is the time to secure a fixed rate to ensure that the cost of their mortgage does not increase over the next few years ”.