Halifax among three major lenders increasing mortgage rates: "Piling the misery on borrowers"

THREE major lenders are increasing their fixed rate mortgage deals with experts warning that the “tide has fully turned” against lower rates.

From Monday, Halifax is raising fixed rates for its homemover and first-time buyers products by up to 0.15%.

BM Solutions is also raising rates on its buy to let products fixed rates by up to 0.09% on Monday.

And from tomorrow, The Mortgage Works is increasing selected five-year fixed rate buy to let products by up to 0.19%.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said the move signals that rates will be higher for longer.

He added: "More rate increases were always on the cards, given that the majority of high street lenders have upped fixed rate deals this week. 

“This is more of a catch-up move by Halifax and the others, adding to the notion that rates will be higher for longer, and the lack of confidence in the government will only make it harder for further rate cuts in the near future.”

Jack Tutton, Director at Fareham-based SJ Mortgages, said political uncertainty is causing chaos.

He continued: “The tide has fully turned with these lenders following many others this week by increasing their rates. These further increases pile on the misery for mortgage holders who are confused by a falling base rate yet increasing mortgage rates. 

"This could only just be the start with the Budget on the horizon and all the uncertainty surrounding it.”

Mike Staton, Director at Mansfield-based Staton Mortgages, said the increased rates are due to the chaotic economic climate in the country.

He said: "I think this is a sign of things to come due to the Rayner Effect. This government is in absolute chaos and the economy knows it. Watching Keir at the moment is akin to watching Thanos with the infinity stones, we are waiting for one click of his fingers to wipe half of the economy out. 

"We can say goodbye to any chance we had of a rate reduction as i believe they will just hold the Bank of England (BoE) base rate as it is, i would go as far as saying that we can expect that for the next 3 meeting which will lead us into 2026 without any more reductions. 

“Even the most die hard of Labour voters will struggle to defend this current governments actions. Hopefully Angela has started a domino effect and more of this inept government will fall.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said rate increases have become the norm.

She added: "It's starting to feel like the lowest rates of 2025 may have come and gone. A number of major lenders have hiked rates this week and more may follow suit next week. If you're looking to buy, speak to a broker as soon as possible to discuss your options. 

"The Autumn Budget is also looming on the horizon and this could create additional uncertainty among buyers and sellers alike. September and October are usually busy months but they may be less busy than normal if rates continue to edge up."