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Santander increases mortgage rates by 0.2% ahead of Autumn Budget

Journalist: Justin Moy, Contributing Editor

ended 18. October 2024

Santander are the latest lender to announce increases of up to 0.2% across the majority of their fixed rate range. Following the positive inflation figures published on Wednesday and with a base rate cut looking likely next month, mortgage rates should technically be going down. But experts say uncertainty ahead of the Budget is likely seeing lenders err on the side of caution.

 

5 responses from the Newspage community

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Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Following this week's positive inflation news and the strong likelihood of a rate cut by the Bank of England next month, these rate increases don't stack up. But there's a potential fiscal horror show at the end of the month in the form of the autumn Budget and you sense lenders are buckling up for the next two weeks. If the Autumn Budget isn't an absolute disaster, we could see rates start to fall again very soon.
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Rohit Kohli
Director at The Mortgage Stop
It was inevitable that once two of the biggest lenders, namely Halifax and Barclays, increased rates that others would follow. This should be a short correction from the recent reductions but it’s disappointing that some borrowers are going to have to pay more for their mortgages than in recent weeks. All these leaks ahead of the Budget are resulting in money leaking from mortgage borrowers' accounts.
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Editor
Justin Moy
Managing Director at EHF Mortgages
Yet another high street lender is pushing rates up, with Santander joining the ranks of Barclays and Halifax this week with similar increases. We hope these will at least be reversed next week, but there may not be much to cheer about until the Labour Budget and how the money markets react to the fiscal plan. That's if there is one.
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Elliott Culley
Director at Switch Mortgage Finance
It's unsurprising to see Santander increasing rates at the start of next week after the recent volatility in SWAP rates. Lenders have to borrow money to offer mortgages and these rates are currently higher so Santander have to pass these costs on to the consumer. Many will now be waiting for the October Budget before making a decision on wanting to buy or not.
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Tom McNulty
Director at Gloucester Mortgage Centre
Countless rumours of potential tax rises from Rachel Reeves to address the so-called shortfall may well have triggered another set of rate increases for borrowers. Her uncertainty smacks of a Chancellor with no idea which sofa to look behind for a few pennies. The economy and property market need a strong decision maker who will at least stick to their guns. We either need a Budget brought forward or the true changes to be leaked. Then we know where we are at.