Smaller mortgage lenders raise their rates
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Some lenders could be poised to raise mortgage rates as intense competition in the sector starts to hit their bottom line.
The warning came from mortgage brokers and property experts in response to rate rise announcements by the West Bromwich Building Society and the Bank of Ireland. In recent months, acute competition and the launch of such initiatives as the government's Help to Buy scheme has helped push down borrowing costs. Some banks have been offering historic low rates as a means to attract business in a pattern reminiscent of the pre-crash market.
However, last week Bank of Ireland raised its base-rate tracker mortgage costs, closely followed by the West Bromwich Building Society bumping its buy-to-let mortgages up by two per cent. The decision was described as "outrageous" by mortgage firm SPF Private Clients. "I would expect customers to fight these decisions," Mark Harris, chief executive of SPF, said.
More rate rises may be on the way, and George Spencer from property company Rentify has some simple advice for borrowers: "If your lender announces that it is raising your rates out of the blue then it's time to move to another bank, possibly on to a fixed-rate deal which will give you some security."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments