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4w ago

Barclays and HSBC Raise Mortgage Rates as NatWest Cuts Ahead of BoE Decision

Average two-year fixes exceed 5%, with banks adjusting offerings in response to funding costs ahead of next week’s Bank of England decision.

Some lenders are cutting mortgage rates while others are upping them (Photo: Mike Kemp/In Pictures via Getty Images)
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Overview

  • Barclays will increase its fixed-rate mortgage products by an average of 0.2 percentage points from June 11.
  • HSBC has implemented similar increases today, mirroring Barclays’ move to curb application volumes and recoup funding costs.
  • NatWest has cut some two- and five-year fixed rates by up to 0.23 percentage points in what brokers describe as a realignment rather than a new market trend.
  • Moneyfacts data shows average two-year fixes at 5.13% and five-year fixes at 5.1%, and experts warn that sub-4% deals are disappearing rapidly.
  • The Bank of England’s base rate remains at 4.25% and its June 19 decision, along with swap rate movements, is expected to influence further mortgage shifts.