Major lenders adjust pricing across residential and buy-to-let ranges
Santander is set to raise a number of its fixed rate mortgage products for new residential customers, while also making changes to landlord remortgage deals, effective Tuesday.
HSBC will also implement its own increases on a variety of two- and five-year fixed-rate products for both residential and buy-to-let borrowers from Monday.
For Santander, the changes will affect first-time buyers, home movers, and those seeking remortgages. Two- and three-year fixed rates at 85% and 90% loan-to-value (LTV) will rise by up to 0.10%, while five-year fixed rates at 85%, 90%, and 95% LTV will increase by up to 0.05%. Ten-year fixed rates at 75% LTV will also go up by 0.10%.
New build products for first-time buyers will see similar increases, with two- and three-year fixed rates at 85% and 90% LTV rising by up to 0.10%, and five-year fixed rates at higher LTVs increasing by up to 0.05%.
Home movers will face increases on selected 60% and all 85%, 90%, and 95% LTV two-year fixed rates, with rises of up to 0.09%. Three-year fixed rates at 60%, 75%, 85%, 90%, and 95% LTV will go up by as much as 0.10%. Five-year fixed rates at 60%, 85%, 90%, and 95% LTV will increase by up to 0.09%, and ten-year fixed rates at 60% and 75% LTV will rise by 0.10%.
Large loan products for first-time buyers, home movers, and remortgages at 60% LTV will see two- and five-year fixed rates rise by 0.05%. Most residential remortgage products at 60% and 75% LTV will increase by up to 0.05% for two-year fixes, and by up to 0.13% for five-year fixes.
Buy-to-let remortgage five-year fixed rates at 65% and 75% LTV will increase by 0.06%. However, two-year fixed rates at 60% LTV for buy-to-let remortgages will decrease by 0.06%.
For product transfers, selected two-year fixed rates at 60% and 75% LTV will increase by 0.02%. Five-year fixed rates at 60% LTV will rise by up to 0.05%, and selected 75% LTV five-year fixed rates will go up by 0.02%.
Meanwhile, HSBC has stated that its two- and five-year fixed rates will rise for UK residential first-time buyer and homemover products, residential remortgages, and products for properties with an energy performance certificate (EPC) rating of ‘C’ or higher.
Increases will also apply to buy-to-let purchase and remortgage deals, as well as products for international residential and buy-to-let borrowers. The changes will affect products up to 95% LTV, though specific pricing details have not been disclosed.
Over the past few weeks, mortgage rates have moved higher, despite the Bank of England maintaining its base rate last month. Lenders are adjusting to continued economic uncertainty, with inflation remaining elevated and the outlook for future rate reductions unclear. Furthermore, wholesale funding costs—which influence mortgage pricing—have climbed due to international economic challenges and increased caution among investors.
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