After Barclays cuts, Santander hikes: "Welcome to mortgage market mayhem"

Welcome to mortgage market mayhem. Santander's announcement to raise rates after Barclays cut them earlier on Tuesday shows the radical flux in the mortgage market at present. Rates are going here, there and everywhere. The volatility shows that borrowers need to act and secure a rate and then let brokers monitor their mortgage for rate reductions.

This is such a turbulent and unpredictable time for mortgage rates. The hope Barclays gave this morning has been cruelly snatched away by Santander this afternoon. Another bittersweet day for borrowers.

Welcome back to the topsy-turvy world of mortgage pricing. One high street lender cuts fixed rates, another increases them not long after. This may reflect several factors, such as whether a lender is looking for business or perhaps turning the taps off to catch up on slower admin. Ultimately it's a mixed message to borrowers who will be confused by such announcements, and just shows the true value of using a mortgage broker, as timing can be so important to secure the best rates. If Ken Dodd did mortgages...

This is what happens when there’s uncertainty and zero growth plans from the government. A chaotic combination of volatility and vagueness is forcing lenders to pull in different directions, leaving borrowers baffled. Rate cuts from some and hikes from others are creating a rollercoaster of confusion, and this is unlikely to stop anytime soon. Until the government delivers clear, growth-driven leadership, stability will remain out of reach.

In what can only be described as the mortgage market's version of a seesaw, Barclays and Santander seem to be playing an entertaining game of "rate tennis". Just as Barclays serves up some delightful rate cuts of up to 0.2%, Santander returns with a cross-court shot of increases effective from this Thursday. Whilst these modest adjustments might leave both brokers and clients feeling a tad dizzy, there's a silver lining for house hunters with Santander's new range of two-year fixed rates for purchases under £250,000. The real picture of where the market's heading will only become clearer once other lenders show their hands. Until then, we'll all be watching this rather intriguing financial ping-pong match with keen interest.

Charles Dickens would love all this, it's like scrooge has come early.
Barclays have opted for the lets give them what the need and ease the rates, Santander on the other hand have decided NO presents under the tree this year kids, lets hike them rates up. It is a very topsy turvy kind of market extremely difficult for brokers to read never mind prospective buyers and sellers.

As Storm Bert leaves us we have a whirlwind of lending decisions from Santander and Barclays. Barclays cutting by up to 0.2% and Santander raising up to 0.18%. These aren’t exactly life changing rate changes either way for borrowers unfortunately, but more a fine rebalancing by lenders. It’s a torrid and confusing time for borrowers and a time to lean on a broker to help. They can get a rate secured now and keep on top of changes until completion to help you get a better rate.