Accord increases rates by up to 0.77%
Accord has just announced it is increasing selected fixed rate products by up to 0.77% - see screengrab. Uk newswire, Newspage, asked brokers for their thoughts, below.
Copy article
4 responses from the Newspage communityCopy all
Copy all
Copy
This is a significant increase in their residential fixed rates and could be a combination of both higher costs and managing current workflows, using the rates to slow down application numbers. But having spoken to a number of lenders last week who are already apparently close to achieving annual lending targets, we may see more tactical pricing over the coming weeks. This is going to feel very uncomfortable if everyone does the same.
Copy
Accord's decision to significantly reprice upwards follows a trend we've been seeing in the wake of last week's alarming inflation data. Their rate increases are among the steepest, which could be due to a variety of factors - they may be managing their pipeline, for instance. If, however, these rate hikes are solely a reaction to the money market's response to the inflation data, it's a worrying sign. It could indicate heightened fears of inflation and a more expensive borrowing environment on the horizon.
Copy
What started as smaller lenders withdrawing products and increasing rates has now spread to larger lenders such as Nationwide and Accord significantly increasing rates. Last week’s inflation figures highlighted the particular problems besetting the UK, still recovering from the fiasco of last years’ mini-Budget, and hit by additional inflationary pressures caused by Brexit. With the highest inflation amongst the G7, the UK increasingly looks like an outlier and markers are responding with higher borrowing costs for the government and consumers alike.
Copy
Talk about reactive, it's like we're back in the 1990s with Hans Van Dan Elzen, or as we all fondly remember him, Yo-hans, keeping a close eye on those interest rates. It's a YoYo situation, my friend, with lenders being more indecisive than a dog trying to figure out a winning poker hand. We're witnessing a wild ride of ups and downs, on and offs, dropping 40 basis points one moment and shooting up by 20 the next.
Here's the deal: we've got these folks in high-powered positions who seem to have missed the memo on decision-making. They lack the knack to not only make sound choices but also effectively communicate them to the wider market. It's like they're playing a game of "guess what I'm thinking" while we're left scratching our heads, wondering where they stand.
And let me tell you, trust is at an all-time low right now. How can we trust any lenders when they can't even trust themselves? It's like watching a game of double-cross, where no one knows who's got the winning hand.
Here's the deal: we've got these folks in high-powered positions who seem to have missed the memo on decision-making. They lack the knack to not only make sound choices but also effectively communicate them to the wider market. It's like they're playing a game of "guess what I'm thinking" while we're left scratching our heads, wondering where they stand.
And let me tell you, trust is at an all-time low right now. How can we trust any lenders when they can't even trust themselves? It's like watching a game of double-cross, where no one knows who's got the winning hand.