
Halifax will raise and cut selected fixed-rate mortgage rates by up to 14 basis points on Friday, while trimming others, as Principality Intermediaries also lifts rates.
The country’s largest mortgage lender will raise homemover and first-time buyer products by up to 10bps on some fixes, it said in a broker’s note without giving further details.
It will trim selected homemover and FTB two-year fixes by as much as 9bps.
Remortgage products, with £1,999, £999 and no product fees, will rise by up to 14bps on five-year fixes, at 60% loan to value and 75% LTV.
Product transfer and further advance products, with £999 and no product fees, will also rise by up to 14bps on five-year fixes, at 60% LTV and 75% LTV.
The move from Halifax comes after inflation spiked today at 3.5% in the 12 months to April from 2.6%, leaving markets concerned that the Bank of England will only cut the base rate, currently at 4.25%, once more this year.
Money markets had pencilled in up to three more base rate cuts in 2025.
Trinity Financial product and communications director Aaron Strutt says: “It does seem like mortgage rates will be going up over the next few days and there may well be a lot of changes over the coming week or two.
“The sub-4% rates we have been used to seeing and borrowers like so much will almost certainly be pulled soon, given how much the cost of funding has increased.
“Borrowers in the process of buying a property or coming up to remortgage should try to secure one of the cheap fixes soon because the lenders do not tend to give much notice that they are pushing their prices up.”
Meanwhile, Principality says it will also raise rates on selected residential home loans tomorrow.
The mutual’s broker-only arm says some two- and five-year fixes at 65% LTV will rise by 7bps, while selected five-year fixes at 75% LTV will increase by 4bps.
It adds that some five-year residential fixes, with cashback, at 65% LTV, will rise by 10bps.
While selected five-year fixes, at 75% LTV, will increase by 12bps.