On March 13th, the Bank of England observed an increase in arrears.

As other lenders, such as Nationwide, raise their product transfer rates to around 5%, there will undoubtedly be a significant impact on household budgets due to increased mortgage expenses. According to the Bank of England’s estimation, around five million homeowners should expect an increase in their monthly mortgage payments by 2026. Complimentary guidance on mortgage matters. Halifax is raising the prices of specific two-year fixed rates for remortgage by a maximum of 0.17 percentage points starting from Friday, March 15th. The bank’s fixed rates for home acquisition, which were announced earlier this week, have been followed by rises.

The increase in interest rates will impact the two-year fixed rates for remortgage, namely for larger loans (£2 million to £5 million), joint ownership and shared equity transactions, and green mortgage loans. The updated pricing will be announced on Friday. Halifax offers a highly competitive two-year fixed rate for refinancing, starting at 4.6% with a £999 charge for a loan-to-value ratio of 60%. Despite the recent rate increase on Friday, brokers believe that Halifax will remain competitive in this market. Halifax will increase the interest rates on some product transfer transactions for existing clients by 0.32 percentage points for two years.

In addition, the lender has declared a reduction in the maximum age limit for some mortgage applications, decreasing it from 75 to 70. The modification will be implemented for certain refinancing applications in which the borrower is either extracting equity or borrowing more funds on their mortgage. It will also apply to certain buy and remortgage applications that are assessed based on the applicant’s credit score. Halifax has stated that a maximum working age of 75 can be applied to any other applications.

Starting tomorrow (14 March), Coventry Building Society will be lowering specific fixed rates for residential and buy-to-let property purchases and refinancing. Even though other lenders are raising their rates, Coventry, a mutual lender, has chosen to decrease its rates. However, brokers argue that Coventry’s rates are not now considered to be the most competitive bargains available.