Customers at a major bank have been warned about extra costs following a huge announcement. Santander has followed Halifax in announcing increasing mortgage rates, with brokers saying “this is certainly showing where the market is heading for now”.
A significant percentage of the Santander rate increases are of 0.15%, but some products are being priced up by 0.19%. The lender is increasing most fixed rates and selected tracker rates across its new business range, as well as some residential fixed rates in its product transfer range. There are no changes to tracker rates in its remortgage and product transfer ranges, or buy-to-let rates in its product transfer range.
Brokers said the changes, which come the day after Halifax announced its own hikes, show the market is going up. Anthony McQuilliam, director of Essex-based Bolt Mortgages, said: “When Santander follows Halifax within 24 hours, that’s not a coincidence, that’s a signal. The two biggest high street lenders repricing on the same day tells borrowers everything they need to know about where the market is heading in the short term.
“The pattern is familiar: one major lender moves, others follow within days. Anyone waiting to see how things settle is usually the last one through the door before rates climb again. If a mortgage renewal or purchase is on the horizon in the next six months, a conversation with a broker needs to happen today, not next week.”
Emma Jones, managing director of Whenthebanksaysno.co.uk, said the soaring price of oil last week was to blame for higher rates, despite the fact that the price had eased so far this week.
She added: “Amid ongoing tensions in the Middle East, the price of oil has been on the rise again and that risks feeding inflation, which could see interest rates rise or at least stay higher for longer.
“The pattern is familiar: one major lender moves, others follow within days. Anyone waiting to see how things settle is usually the last one through the door before rates climb again. If a mortgage renewal or purchase is on the horizon in the next six months, a conversation with a broker needs to happen today, not next week.”
Emma Jones, managing director of Whenthebanksaysno.co.uk, said the soaring price of oil last week was to blame for higher rates, despite the fact that the price had eased so far this week.
She added: “Amid ongoing tensions in the Middle East, the price of oil has been on the rise again and that risks feeding inflation, which could see interest rates rise or at least stay higher for longer.