HSBC is making widespread price hikes tomorrow but has not revealed new rates, while Coventry has relaunched the new business range it pulled from sale on Sunday, with prices up to 75 basis points higher.
It will be the second round of increases HSBC has made this week, after previously raising rates on Monday.
While some lenders give advisers advance warning of the scale of increases, HSBC does not forewarn brokers how much prices are going up.
Coventry Building Society has relaunched its new business range with two-year fixes now up to 75bps higher than equivalent products when these were pulled from sale on Sunday.
The lender removed all products for new customers for sale on Sunday evening because of market volatility caused by the war in the Middle East and has only just relaunched them this morning.
Its lowest two-year fixed for purchase is now 5.17% 65% LTV with a £999 fee, while the equivalent deal on Sunday was 4.42%.
Under its new pricing, five-year fixes start from 4.99%, which is for a residential purchase deal at 65% LTV with a £999 fee.
Remortgage deals start from 5.22% for a two-year fix and 5.03% for a five-year fix with the same LTV and fee.
The lender is still offering 95% LTV mortgages for first-time buyers, home movers and
A three-year fixed for first-time buyers at 95% LTV is 5.59% with no fee and a five-year alternative is available at the same price and the two-year equivalent is 5.67%.
The news follows a frenzy of rate increases and product withdrawals in recent days.
Among the major lenders repricing yesterday were Santander, NatWest and TSB.
As a result borrowers coming to the end of five-year fixed-rate deals this month could see a payment jump of £4,655 per year based on average rates and a £250,000 mortgage, Moneyfacts’ calculations show.
Moneyfactscompare.co.uk personal finance analyst Caitlyn Eastell says: “Millions of remortgage customers are facing a shocking spike in their repayments, especially homeowners coming off a low five-year deal.
“If these borrowers lock into a shorter two-year term, they could see their repayments rise by almost £4,900 a year, which equates to almost £9,800 for the full two-year term.
“That is an increase that many households may not be prepared for.
“If inflation rises, this may put additional strain on consumers that are already being stretched, and they may be forced to make difficult decisions around spending and other financial commitments.”
