UK mortgage rates rise again after resumption of Middle East hostilities - FT中文网
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UK mortgage rates rise again after resumption of Middle East hostilities

Several big lenders raised their fixed rates by as much as 0.35 percentage points
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{"text":[[{"start":7.45,"text":"Several big UK lenders this week began raising their mortgage interest rates, putting the brakes on recent falls in costs for borrowers and prompting brokers to warn of further price rises to come. "}],[{"start":18.8,"text":"Barclays, NatWest, Nationwide, Coventry Building Society and Virgin Money this week raised their fixed rates — some by as much as 0.35 percentage points — adding to the costs of taking out or remortgaging a home loan. "}],[{"start":33.3,"text":"Rates on one two-year fixed-rate deal from Nationwide have jumped from 4.24 per cent to 4.59 per cent, equating to a £480 annual rise in payments for a £200,000 loan over 25 years."}],[{"start":48.199999999999996,"text":"Brokers and finance experts said the recent resumption of hostilities in the Middle East had tested nerves in financial markets, leading to higher UK swap rates, which lenders use to guide their pricing of fixed-rate mortgages."}],[{"start":61.849999999999994,"text":"Swap rates, which had been elevated since the start of the Iran war, jumped again in the past fortnight, with two-year swaps rising from 3.95 per cent on June 26 to 4.22 per cent on Thursday."}],[{"start":74.5,"text":"Rachel Springall, finance expert at Moneyfacts, said: “Borrowers will be deeply disappointed to see mortgage rates on the rise again, but this just shows how sensitive our financial markets are to geopolitical tensions. "}],[{"start":87.5,"text":"“As feared earlier this week, rising swap rates are a signal for lenders to move quickly to reprice their ranges, as fixed mortgage rates tend to follow these moves.” "}],[{"start":97.35,"text":"David Hollingworth, associate director at L&C Mortgages, said borrowers waiting in hope for more rate cuts would need to rethink. “Several moves in quick succession is usually a signal that others will not be far behind.” "}],[{"start":110.6,"text":"He urged borrowers who were coming towards the end of their fixed-rate term to reserve their next deal soon as a precautionary measure. “Things can change quickly but securing a rate now could avoid being hit with further rises while still allowing a further review of rates before completion if the situation eases back again.”"}],[{"start":129.45,"text":"Aaron Strutt, product director at broker Trinity Financial, said further price hikes “seemed likely”. "}],[{"start":136.29999999999998,"text":"But he added that though the pace of fixed-rate price reductions had slowed significantly, there were still lower-priced options available. “Many borrowers are still taking two-year fixes priced around 4.3 per cent and tracker mortgages below 4 per cent, particularly if they expect the Bank of England to cut the base rate from 3.75 per cent this year or they need flexibility.” "}],[{"start":160.1,"text":"Lenders seldom penalise tracker mortgage borrowers who subsequently decide to move to a fix when rates settle at their preferred level, so these are often recommended by brokers at times of uncertainty. "}],[{"start":172.29999999999998,"text":"While Nationwide raised its fixed rates this week, it also reduced the minimum income threshold that allows new customers to take out mortgages up to six times their salary. Those with an annual income of £75,000 will now qualify for the higher loan-to-income ratio, down from £100,000."}],[{"start":189.39999999999998,"text":"Strutt said: “This means the higher income multiple is available to lots more people, even though many would prefer not to be taking such a large income stretch.”"}],[{"start":198.59999999999997,"text":"Lloyds also launched some attractive mortgage deals for its Premier account holders earning £100,000 or more, with fixed rates starting from 4.13 per cent for qualifying first-time buyers and home movers — well below the average."}],[{"start":220.94999999999996,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784270185_4432.mp3"}

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