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"Death by a thousand increases in the mortgage market at present" as Halifax, Santander and Accord increase rates

ended 03. June 2025

Three major lenders have increased their fixed rates in the past 24 hours, given the ongoing increase in Swap rates and the chances of further base rate cuts receeding. Halifax, Accord and Santander are all pushing rates up a little, with the lattter also reducing some of their buy-to-let rates, too. Newspage asked brokers where they believe rates are headed next and what their advice is to borrowers in the current climate. Views below.

6 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
It seems to be a case of death by a thousand increases in the mortgage market at present. Lenders are slowly but surely reversing their recent rate cuts in response to rising SWAP rates. Prospective borrowers may be left bemused by a rising market once more, as many were waiting on the expectation of even lower rates. In a capricious market such as this, it pays to act quickly and lock into a rate first to ensure you get the home of your dreams rather than trying to play the market and risk everything. Working with a good broker with their finger on the pulse will always be the best way to ultimately ensure the very best rate, whatever way the market moves.
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Justin Moy
Managing Director at EHF Mortgages
Though these are small-ish rate increases in the main, high street lenders pricing mortgages on wafer-thin margins and wobbles in the Swap market will be passed onto borrowers within a few days. Other mainstream lenders will inevitably follow as no one lender will want to be cheapest, and therefore attract too much business.
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Rob Peters
Principal at Simple Fast Mortgage
The recent rate increases from major lenders are a measured response to market movements. With swap rates rising and inflation proving stickier than hoped, lenders are adjusting pricing to reflect the reduced likelihood of near-term base rate cuts. Rates remain historically low compared to where they were even six months ago so while this round of increases isn’t ideal, it’s not a disaster, either. Lenders are responding to real-time conditions and borrowers should, too. The message is clear: don’t wait for a perfect moment, get advice now, compare options and lock in where it makes sense to do so. There are still plently of good deals out there.
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Harry Goodliffe
Director at HTG Mortgages
With swap rates creeping up and inflation refusing to play ball, lenders are reacting fast. The changes so far are small, but the direction of travel matters. If you're waiting for sub-4% deals to make a comeback, you might be waiting a while. The market’s jittery, and until we get clearer signals from the Bank of England, fixed rates could keep edging up.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Accord, Halifax, and Santander are raising fixed rates as market optimism cools and swap rates climb. The message? This is not an era of ever-cheaper mortgages. This is a seesaw market where rates swing both ways. If a deal works for you today, grab it. Waiting for rate perfection could mean missing the boat entirely, especially with house prices marching upward. Delay now, and the cost might not just be a higher rate, it could be the cost of homeownership itself.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
We have seen slight increases in mortgage rates of late and this behaviour from lenders will likely continue over the short term. Consumers need to lock in a rate now and work with their broker to take advantage of rate reductions if they come available leading up to completion.