Lenders Raise Mortgage Interest Rates Despite Borrower Hopes
Some newly released information today is sure to send ripples through the housing market, mortgage lenders Accord Mortgages and NatWest have both announced significant rate increases, dashing the hopes of many borrowers and mortgage brokers who were anticipating a downward trend in rates. Although no one is expecting to see mortgage interest rates fall to the 1% and 2% that they once were, many were hopefully that reductions would soon be on the horizon.
Accord Mortgage Rates Rise Across Products
Accord Mortgages, a well-known name in the mortgage lending space, unveiled changes to its Residential New Business range, effective from the 23rd of April 2024. The changes, which come into effect as the clock strikes 10pm. on the 22nd of April, see fixed rates across various loan-to-value (LTV) ratios climbing by anywhere from 0.10% to a substantial 0.35%. Moreover, key products like the Boost LTI rate and Cascade products are not immune to the upward adjustments, with increases ranging from 0.18% to 0.40%.
NatWest Switcher Product Mortgage Interest Rates Increase
Meanwhile, NatWest, another major player in the mortgage market, is also following suit. Effective from the 23rd of April 2024 too, the bank is implementing changes to its Existing Customer product range, with selected 2 and 5-year deals witnessing a modest rate increase of 0.10% under the Switcher mortgage category.
The news of these rate hikes has left many borrowers and industry observers disheartened, as they had been holding out for the possibility of rate reductions in the near future. With inflation showing signs of abating and murmurs of a potential base rate cut from the Bank of England, the prevailing sentiment was one of optimism for cheaper borrowing costs.
Mortgage Expert Opinion: Louis Mason From Oportfolio Mortgages
Louis Mason, Content and Communications Director at Oportfolio Mortgages, weighed in on the developments, acknowledging the disappointment felt by many. However, he offered a silver lining amidst the gloom, expressing hope that the tide may soon turn.
“While the recent rate increases by lenders like Accord Mortgages and NatWest may come as a blow to borrowers and brokers alike, there is reason to remain optimistic,” remarked Mason. “As inflation continues to recede and with murmurs of a potential base rate adjustment from the Bank of England, there’s a glimmer of hope that mortgage rates could start to soften in the coming months.”
Speak To A Mortgage Expert
Indeed, Mason’s words encapsulate the mixed emotions swirling within the mortgage market. While the immediate future may present challenges for borrowers navigating higher rates, the prospect of a more favourable lending environment in the not-too-distant future offers a ray of hope in an otherwise uncertain landscape. People are struggling with mortgage rates, but as the economy gets stronger with every day, we are confident that things are looking up. If you or anyone you know wants to arrange a fee free initial mortgage consultation, then please feel free to give our team a call today. We are here to help.
