Mortgage borrowers’ chances of securing an ultra-cheap deal narrowed this week in spite of a decision by the Bank of England to hold interest rates at 0.1 per cent, as banks and building societies raised interest rates across their fixed-rate home loans.
The central bank’s decision surprised financial markets, which had factored in a rise this month. Rates are nonetheless likely to rise to around 1 per cent by the end of 2022, according to the Bank’s inflation report.
Lenders, which had already been raising interest rates on their home loans amid expectations the Bank would act, pressed ahead with further withdrawals of low rates.
Rate rises on mortgages at HSBC, NatWest and Nationwide took effect on Thursday. Skipton Building Society said it would remove all of its three-year fixed rates on Friday and Leeds Building Society announced a rise in rates on mortgages at loan-to-value ratios of 80 and 85 per cent.