Halifax rate rises awaited
by Gill Montia
Halifax is reported to be reviewing its mortgage range with a view to introducing rate rises on some products and reducing the cost of others.
The UK’s largest mortgage lender is likely to be raising the cost of its fixed-rate deals because these are determined by money market swap rates.
Banks borrowing over a fixed term to finance fixed-rate mortgage business have seen swap rates continue to rise, despite the base rate remaining steady at 5% in May and June.
This is an indication that traders expect interest rates to rise during the period of the loan.
Halifax has not yet revealed details of any imminent rate hikes but mortgage experts are expecting a rise of 0.10% on new two-year fixed rate loans and cuts averaging 0.35% on a number of other deals.
The lender will also be likely to direct its best loans at those with substantial deposits and discourage customers who are looking for high loan-to-value (LTV) ratios.
Earlier this week, Abbey announced that anyone applying for its one remaining 95% LTV mortgage will need to pay the arrangement fee of £2,499 in advance, rather than attach it to the loan.
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