Product refreshers, product withdrawals, product increases, whatever you want to call it. Something is stirring in the mortgage market this week, and many lenders are making changes to mortgage products that will mean that rates are going up. In the first couple of days in the final week of May, mortgage brokers have been bombarded with emails from banks and building societies, letting them know that they are pulling a lot of their current products. The general expectation and consensus being that they will be replaced with rates of 5% or higher for most.
Changes To Mortgage Products
Last week, predictions came out of the ONS that UK inflation was at around 8.7%. Although much lower than the figure it was a month ago, 8.7% is still a lot higher than the figure of 2% that the Bank of England is hoping to meet. This, unfortunately has obviously scared a few banks, and lenders have started removing and changing their rates in quick succession. Much like they did back in September 2022 when Liz Truss’s government crashed the economy. There are a lot of lenders changing their rates and products at the moment, and there will inevitably be more. Here are a few of the lender updates that Oportfolio have received recently.
Coventry Building Society
Owner-Occupied
(new business)
- No changes to existing customer only (product transfer and further advance) rates
- Closing all 2, 3 & 5 Year Fixed New Business £999 fee rates (excl. Offset, Interest-only & Offset Interest-only)
- Closing all 2, 3 & 5 Year Fixed New Business rates at 65% and 80% LTV
- Closing all 2 & 5 Year Fixed New Business Offset rates at 65% LTV
Buy to Let
(new business)
- No changes to existing customer only (product transfer and further advance) rates
- Closing all 2 and 5 Year Fixed BTL and Portfolio BTL New Business £1999 fee rates
- Closing all 2 and 5 Year Fixed BTL and Portfolio BTL New business rates at 50% LTV
Accord Mortgages Changes To Mortgage Products
New Business
- Selected fixed rate products at 60% LTV will be increased by between 0.70% to 0.77%
- Selected fixed rate products at 75% LTV will be increased by between 0.70% to 0.77%
- Selected fixed rate products at 80% LTV will be increased by between 0.67% to 0.77%
- Selected fixed rate products at 85% LTV will be increased by between 0.67% to 0.77%
- Selected fixed rate products at 90% LTV will be increased by between 0.60% to 0.72%
- Selected fixed rate products at 95% LTV will be increased by between 0.52% to 0.72%
- A small number of products will be withdrawn and not replaced
Product Transfer and Additional Loans
- All fixed rates are increasing by up to 0.40%
- Product Transfer end dates will be extended to 31 October
- Tracker rates remain unchanged
HSBC
Existing residential customer switching
- 2 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 2, 3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 3 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85%, 90% and 95% LTV increased
- 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 90% and 95% LTV increased
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 10 Year Fixed Rate Standard at 60%, 70% and 75% LTV increased
Existing residential customer borrowing more
- 2 & 3 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 2, 3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80% and 90% LTV increased
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 10 Year Fixed Rate Standard at 60%, 70% and 75% LTV increased
Residential first time buyer / home mover
- 2 & 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 2, 3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 3 Year Fixed Fee Saver at 60%, 70%, 75%, 80% and 85% LTV increased
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
Residential remortgage
- 2, 3 & 5 Year Fixed Fee Saver at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 2,3 & 5 Year Fixed Standard at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 5 Year Premier Exclusive at 60%, 70%, 75%, 80%, 85% and 90% LTV increased
- 10 Year Fixed Rate Fee Saver at 60%, 70%, 75% and 80% LTV increased
- 10 Year Fixed Rate Standard at 60%, 70%, 75% and 80% LTV increased
International residential
- 2, 3 & 5 Year Fixed Fee Saver at 60%, 70% and 75% LTV increased
- 2, 3 & 5 Year Fixed Standard at 60%, 70% and 75% LTV increased
- 5 Year Premier Exclusive at 60%, 70% and 75% LTV increased
- 10 Year Fixed Fee Saver at 60%, 70% and 75% LTV increased
- 10 Year Fixed Standard at 60%, 70% and 75% LTV increased
Existing BTL customer switching / borrowing more
- 2 Year Fixed Standard at 60%, 65% and 75% LTV increased
BTL purchase
- 2 Year Fixed Fee Saver at 60% and 65% LTV increased
- 2 Year Fixed Standard at 60%, 65% and 75% LTV increased
BTL remortgage
- 2 Year Fixed Fee Saver at 65% LTV increased
- 2 Year Fixed Standard at 60% and 65% LTV increased
- 5 Year Fixed Fee Saver at 60% and 65% LTV increased
- 5 Year Fixed Standard at 65% LTV increased
Latest Average Mortgage Rates
The average UK mortgage rates across LTVs have increased significantly in a week, apart from variable rates:
- Two-year fixed-rate mortgage (75% LTV) = 5.63% An increase of +0.34% in a week
- Five-year fixed-rate mortgage rate (75% LTV) = 4.80% An increase of +0.16% in a week
- Two-year variable-rate mortgage rate (75% LTV) = 5.09% A decrease of -0.05% in a week
- Two-year fixed-rate mortgage (90% LTV) = 5.25% An increase of +0.04% in a week
Speak To a Mortgage Professional About Mortgage Product Changes
If you are concerned about your mortgage rate going up, speak to a mortgage advisor at Oportfolio to get expert advice. You can arrange a remortgage and secure a new rate 6-months in advance, so don’t wait and risk rates going up even higher. Call our team today or drop us an email.
