Several banks also pulled deals over the weekend, including Santander, the third largest lender – which increased several fixed rates by between 0.05 percentage points and 0.43 points and withdrew a 5-year fixed rate remortgage deal. TSB withdrew all of its ten-year fixed-rate deals on Friday with just two and a half hours’ notice, according to. Meanwhile Coventry Building Society is set to increase all of its two, three and five-year deals imminently.
Some 750,000 mortgage holders, some of whom who are coming off very low fixed rate deals, reach the end of that low fixed rate during the remainder of this year according to the Office for National Statistics. “The major lenders have increased their rates now so it’s likely that we’ve seen the majority of rate rises feed through the system,” said Andrew Montlake, managing director of Coreco mortgage brokers.
He added: “It is likely that rates will stay where they are until there is better economic news. It’s frustrating as the outlook was starting to look more steady, until this happened.as you never know what is going to happen with the next inflation report. If products do improve there is usually scope to switch before you need to complete.”
Although many are already struggling with increased rates, a report from the Resolution Foundation last month found that due to the popularity of longer-term fixed rate deals, only about a third of the impact has been felt so far. The authors of the report concluded “there is still a lot more pain to come”., variable rates, including trackers, which follow the base rate are also expected to increase.
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