Are Mortgage Rates About to Increase?
27.05.25Welcome to another week of wonder in our fine industry
SWAP Rate Increases
This is just a quick update after the Bank Holiday weekend and the inflation figures, which saw SWAP rates increase once more.
Whilst there has been some repricing upwards of rates from lenders such as Santander, Nationwide, and TSB, mortgage lenders have kept rises slight, with competitive pressures winning out and keeping rates for most as they were. Barclays, meanwhile, has reduced its rates, which shows the differing strategies of lenders.
The best rates are still looking good at well under 4%.
SWAP rates have picked up a touch again this morning, causing Virgin Money to reprice upwards today. However, I suspect lenders will be looking to keep rates from increasing as long as possible, or at least until it looks like their service may start to suffer as those who top the best buy charts get inundated with applications.
That said, clients need to be aware that in this changing landscape, it is not a foregone conclusion that waiting will bring lower rates, and it is those with the determination to press ahead who will undoubtedly get their dream home.
HNW Borrowing
Lenders are really keen to lend now, and we have seen more lenders reduce their stress rates to allow borrowers to access that little bit more finance. Even high-net-worth lenders such as Investec have got in on the act, showing that those borrowing over £1m are just as much on the radar. This means that HNW clients may be able to borrow between 10% and 30% more.
As always, our amazing advisers are here to help your applicants with simple or complex transactions. Also, don’t forget we have an incredible team of experienced specialist finance and commercial brokers who are experts in dealing with large portfolio landlords, commercial development, and a whole lot more.
Best Mortgage Rates
In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 3.75% (6.70% APRC) and 5-year fixes from 3.88%, (6.00% APRC), whilst variable discounted rates are available from 4.19%, (5.90% APRC) and variable tracker rates from 4.36% (7.40%).
Those looking at Buy-To-Let can now obtain products from 2.79% (7.70% APRC) for a 2-year fixed, 4.52% (7.50% APRC) for a 2-year tracker, or 5-year fixes from 3.61% (4.00% APRC).
Have a great week!
Written by Andrew Montlake
Andrew Montlake, better known as Monty, began his journey with an Hons degree in Economics & Politics before starting in the mortgage industry in February 1994. As a main founder of Coreco in 2009, he successfully grew the brand, marketing, and communications, and was made MD in 2019 focussing on the overall vision, strategy, and culture of the company. As Coreco’s media spokesperson, Andrew can often be seen or heard on TV and radio as well as regularly commenting in the national, local, and trade press. He is the author of this acclaimed Mortgage Blog and is well-known for his social media, podcasts, and public speaking. Andrew is now proud to serve as Chairman of the Association of Mortgage Intermediaries, (AMI) as a cheerleader for the Mortgage Industry as a whole and continues to work at the coal face, writing mortgage business and advising clients.
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