Big six mortgage lenders all raise rates following SWAP rate volatility

All eyes on the Bank of England's Monetary Policy Committee on Thursday to see what they do with Base Rate. With greater volatility in the SWAP markets, which dictate fixed rate pricing, we don't think we've seen the end of upward rate increases.

Fixed rates rises are happening across the board with most lenders. Our advice to anyone coming up to 6 months before their current fixed rate deal ending is to speak with a broker and get something locked in as soon as possible. That way they can protect themselves from future rate rises, but can also cancel and re-book a better deal if it comes up in the next 6 months.

It's been a dark week for borrowers, and it's only Tuesday. Every one of the Big Six has now hiked, and some of those increases are big ones.

Thursday's Bank of England decision will be tight. I expect a hold, because the data isn't forcing a rise yet. But don't mistake that for light at the end of the tunnel. The inflation pressure is coming.

With oil and energy costs where they are, I'd be surprised not to see a rate rise by the end of the year, or early in the new year at the latest.

Politicians need to get a grip. The bulk of this is down to one man, and global leaders need to work out how to stand up to him. Until they do, world events will keep feeding straight into UK inflation, mortgages will keep getting less affordable, and the market could grind to a halt.

Mortgage warning bells are ringing again.

Major lenders are moving fast, with Barclays confirming rate increases across selected residential purchase products after renewed swap rate volatility.

When swap rates jump, mortgage pricing can change almost overnight — and borrowers are now seeing that in real time.

With global debt concerns, inflation pressure and nervous markets all feeding into the picture, the mortgage market is entering another tense period.

Does this mean a housing crash is guaranteed? No. But pressure on affordability is real, and sudden rate rises can quickly change what buyers and homeowners can afford.

The message is clear: mortgage rates are moving, lenders are reacting, and anyone buying, remortgaging or nearing the end of a fixed rate should review their options early and get proper mortgage advice.

When five of the big six increase rates within 48 hours, the funding markets are sending an unmistakable signal. Swaps have been driven by war, oil, and broader jitters, and Barclays’ move from its 4.55% two-year fix to 4.75% reflects that pressure. The Bank of England decision on Thursday may not halt the current trend.

If you are purchasing, or your deal expires in the next six months, lock in a rate now. Most lenders allow a remortgage offer to be held for as long as six months; if prices drop, you can move to the cheaper product, and if they climb, you are already covered. Delaying is a gamble, and at the moment you do not need to take it.

Black Friday has come early, except this time borrowers are rushing to lock in before prices go up, not down. Barclays raising rates on a chunk of its purchase range from tomorrow, alongside the rest of the big six repricing on the back of swap rate volatility, tells you everything about where this market is heading. This isn't a one-lender blip. When six major lenders move in the same direction at the same time, that's the market repricing risk across the board, not reacting to one bank's internal numbers. Barclays borrowers now have nine days to package and submit a case once a rate is secured, and that kind of tight turnaround window is exactly the pressure point people need to move fast on. If you've got a rate in your sights, or a deal expiring in the next few months, today is not the day to sit and wait for a better offer. The direction of travel is up, and the lenders leading the market have just confirmed it.

World events, a new Labour PM, Budget uncertainty and the highest UK borrowing costs in a long time — no wonder swap rates have jumped. When swaps move, mortgage rates follow. Fast.

That is not a blip for the City. It is higher monthly payments on the high street. Lenders raise quicker than they cut, and waiting for the market to “settle” is how people miss the boat.

Our advice does not change: remortgage as soon as you can. Up to six months out with a new lender, three to four months with your current one. Lock today’s rate. Protect yourself if prices climb. If rates fall, move to something cheaper — you still win.

Waiting for the perfect mortgage means you almost certainly will not get one. Secure a deal now. If rates drop, lower it later. That is how you get the best mortgage — regardless of world events.

When all of the big six are moving rates upwards, this is no longer the odd lender tweaking its pricing; it is a clear reaction to what has been a pretty brutal spell of volatility in the money markets.
Mortgage rates do not move simply because Bank Rate changes. Swap rates, gilt yields, inflation expectations and global events all feed into lenders’ cost of funding, and those costs have risen sharply.
There is still strong appetite to lend, so this is not lenders shutting up shop, but pricing has become much more difficult. Borrowers should not panic, but anyone approaching the end of a fixed rate should start looking sooner rather than later. The cheapest deal today is no use if you wait for tomorrow and discover it has disappeared.