Santander announces another increase to fixed rates - the second time in the space of a week

The current market feels like a chaotic game of pass the parcel, where lenders are scrambling to avoid holding the lowest rate when the music stops. With rates increasing multiple times within the same week, advising clients becomes a real challenge in this ever-shifting landscape."

While it's frustrating that Santander's pricing wasn't accurate on Monday, they've at least granted brokers and borrowers until close of business tomorrow before implementing rate increases. However, the promising start to the year feels like a distant memory, and it seems unlikely that rate reductions will be coming anytime soon.

Santander's second rate hike in a week reflects the broader market's reaction to rising Swap rates. As we approach summer, this trend hints at a looming tightening of lending, presenting hurdles for borrowers. Urgent government intervention is warranted to aid current mortgage holders and first-time buyers, especially concerning affordability. Without decisive action, we face potential repercussions for the UK economy and property market. Implementing measures now can alleviate financial strain on households and foster a more robust market environment."

It's going from bad to worse for borrowers as lenders now scramble to avoid being the best-priced on the market as this second increase in 7 days from Santander shows. This feels like the period immediately after post Truss debacle scrambling to avoid new business as Gilts and Swaps increase. All the positive gains from the start of the year have now seem a distant memory.

Santander hiking rates for the second time in a week is a good barometer for market sentiment and mortgage borrowers are going to get burned badly if this trend continues.

Banks and building societies are definitely not shutting up shop for the summer. They want to issue more mortgages, but these rate hikes will not help. Some of the lenders have announced their gross lending figures, and they are significantly down. Rates need to improve rather than go up if they want to get the property market moving again.