Homeowners seeking new mortgage deals may face disappointing news as several lenders have raised their fixed rates, impacting the overall average fixed rates in the market.
Moneyfacts, a financial information website, disclosed that various lenders like First Direct, Coventry Building Society, Yorkshire Building Society, and Nottingham Building Society have adjusted their fixed deal pricing.
Additionally, Cumberland Building Society is temporarily suspending certain products to review their mortgage pricing strategies, according to Moneyfacts.
The recent rate hikes come on the heels of last week’s adjustments by HSBC UK, NatWest, and Nationwide Building Society.
As of Monday morning, Moneyfacts data shows that the average two-year fixed homeowner mortgage rate has risen to 4.87% from 4.84% on Friday.
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The average five-year fixed homeowner mortgage rate stood at 4.98% on Monday morning, up from 4.96% on Friday.
Adam French, the consumer finance head at Moneyfacts, remarked that the expectation of a March base rate cut was reversed due to heightened tensions in Iran, leading to renewed inflation concerns, especially with disruptions in energy markets causing price hikes.
The shift in sentiment has impacted swap markets used by lenders to fund fixed-rate mortgages, resulting in quick adjustments to mortgage pricing due to rising funding costs.
French added that many lenders have raised rates, including HSBC, Nationwide Building