NatWest has raised its fixed rates twice in just over a week, with some rates rising by over 0.35%. HSBC has increased selected fixed-rate mortgages by 0.25%, while Accord Mortgages has increased rates across its entire residential range. Nationwide for Intermediaries has also hiked some fixed-rate mortgages by up to 0.30% and increased its trackers by 0.25%.
Aaron Strutt, product director at Trinity Financial, says: “Over the last few months there have been consistent rate rises, some of which have been quite significant. It is surprising rates are not more expensive given the scale of the changes. HSBC for Intermediaries has repriced its mortgage rates at least 13 times this year."
In a more positive move, Halifax for Intermediaries has made its ten-year fixes available to home movers and first-time buyers, rather than limiting them to remortgaging customers. Nationwide for Intermediaries is also raising its maximum loan-to-income from 4.49x salary to 6.5x salary on like-for-like remortgages.
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Barclays pulls some fixed rates to manage demand
Some lenders are taking longer than others to issue mortgage offers as the industry continues to experience a busy period.
Earlier this week Barclays for Intermediaries pulled a selection of its two and five-year fixed-rate mortgages to "ensure it can efficiently process business", while Clydesdale Bank is taking an average of 27 days from the submission of an application to produce the offer.
Our administration staff are finding the lenders have longer hold times on the phones, and they are regularly waiting over an hour to check on the progress of applications. If you are in a hurry to get a mortgage, we can typically still produce faster mortgage offers through lenders like Halifax for Intermediaries.
HSBC tightens 5.5 times salary mortgage rules
HSBC for Intermediaries has raised the size of the deposit borrowers need to secure its 5.5 times salary mortgages.
The bank previously provided 5.5 times salary mortgages to borrowers with a 10% deposit but now requires applicants to have a 20% deposit.
Many banks and building societies offer income stretch mortgages to professionals and higher earners with larger deposits.
Our brokers can access 5.5 times salary mortgages to first time buyers with a 5% deposit, providing they have a minimum income of £37,000 or earn £55,000 for joint applicants. Also, 5.5 times the salary for next time buyers earning £75,000 with a 15% deposit.