On March 5th, market analysts anticipate that the bank rate will remain up for an extended period.

The first interest rate for a three-year purchase will be 5.34% (for loans up to 95% of the property’s value), while the rates for a five-year purchase will start at 4.59% (for loans up to 85% of the property’s value), with an additional fee of £995. However, the fixed rates offered on product transfer packages for existing TSB borrowers will increase by 0.1 percentage points. Additionally, the two-year fixed rates for buy-to-let remortgage will also rise by 0.2 percentage points. Product transfer arrangements for residential properties with fixed interest rates for two, three, and five years are impacted by loan-to-value ratios ranging from 60% to 75%.

The interest rates for two-year deals with a £995 fee will now begin at 4.64%, while the rates for identical five-year deals will increase to 4.39%. Saffron Building Society has reduced interest rates on buy-to-let mortgages, mortgages for self-employed individuals, and mortgages for first-time homebuyers by a maximum of 0.8 percentage points. The offer entails a fixed interest rate of 5.27% for five years, specifically designed for individuals purchasing their first residential property, provided they can provide a cash deposit of 10%. There is no charge associated with the transaction.

HSBC has recently joined other lenders, including Barclays, NatWest, Virgin Money, Clydesdale Bank, and Principality Building Society, in raising the prices of their fixed-rate mortgages. This marks HSBC’s second interest rate hike in less than a fortnight. Tomorrow (6 March), the upcoming rate changes will result in an increase in interest rates for most loan-to-value ratios for residential and buy-to-let products, affecting both new and existing customers. Multiple prominent lenders are raising their borrowing rates, as it is widely believed that the Bank of England will maintain higher interest rates for an extended period due to persistently rising inflation.

Lenders are reacting to the increase in ‘swap’ rates, which are the rates at which banks lend to one another and have an impact on the fixed-rate borrowing expenses for customers. Nick Mendes, a broker with John Charcol, stated that swap rates are experiencing slight increases in anticipation of tomorrow’s Budget. Additionally, there has been a marked decline in sentiment and confidence in the market in recent weeks. Barclays, NatWest, Virgin Money, Clydesdale Bank (which is a part of Virgin Money), and Principality Building Society have increased certain residential fixed rates, joining several other lenders that have done the same in the past few weeks.