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Lender activity since rate hike

ended 03. August 2023

Journalist at the Mail Online keen to know whether any banks or building societies have already responded to the Bank of England's interest rate announcement? They note that Skipton have vowed not to increase their mortgage rates: https://twitter.com/skiptonbs/status/1687062808268075008

Anything else happening out there? Deadline is ASAP.

5 responses from the Newspage community

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Luke Thompson
Director at PAB Wealth Management
Both Santander and Nationwide have already responded by advising that they will be increasing their standard variable rates. Nationwide especially are always very quick out of the gate to inform advisers that this is what they will be doing. We have also had Santander emailing today to advise that they will be reducing fixed rates. This shows once more that the base rate being set by the Bank of England isn't correlating to what mortgage lenders are doing. Most lenders had priced in this rate rise weeks ago and more than likely had actually potentially priced in a 0.50% hike. So a smaller hike than may have been expected in the middle of July could mean fixed rates continue to fall slightly despite today's announcement.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
As expected, with the 0.25% rate rise already priced into most lenders' product rates, there have not been any rates pulled or urgent rate increases. Rates should remain stable or even slightly reduce as lenders feel more confident the base rate is reaching its peak. The only announcements from lenders today affect tracker mortgages and their variable rates increasing, which is nothing out of the ordinary. The real question for banks is how long will it take them to pass the rate increase onto savers.
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Gary Bush
Financial Adviser at MortgageShop.com
Sadly lenders have been quick off the mark to start making increase announcements. The first we saw was Santander like a whippet out of the trap. We had hoped for no activity for this week as it was clear the market had already priced this increase in and rates were a little top-heavy as it was.
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Ashley Thomas
Director at Magni Finance
The only response we have seen is that Santander are reducing their fixed rates between 0.10% to 0.39%.
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Ben Tadd
Director at Lucra Mortgages
With lenders having already priced in the heavily anticipated base rate rise of 0.25% today, as expected, there have been no knee-jerk reactions in the market. Lenders have maintained the status quo and not opted to increase their fixed rate product offerings, with those planning on cutting rates tomorrow, still pressing ahead with their plans to offer more competitive rates. It will be interesting to see if any more lenders announce that they too will be holding their reversionary rates, in line with the stance Skipton has publicised since the base rate decision earlier today.