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"TSB’s latest 0.3% rate hike will hit buyers and those remortgaging hard at the worst possible time"

Journalist: Justin Moy, Contributing Editor

ended 14. November 2024

TSB has this morning announced further increases to the remainder of its product range following its increases earlier in the week. One broker said: “TSB’s latest 0.3% rate hike will hit buyers and those remortgaging hard at the worst possible time.” More views below.

 

7 responses from the Newspage community

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David Stirling
Independent Financial Advisor at Mint Wealth
TSB are the latest lender to hike rates significantly this week and this can only be bad news for borrowers and those looking to remortgage. Some poor borrowers are left reeling and confused, having waited patiently for the Bank of England to lower rates, in the vain hope that lenders would pass this on and they could secure a more competitive rate. The exact opposite has happened and this is further straining household finances in the run-up to Christmas. It's not hard to see why the Ministry of Justice have announced a massive 56% increase in repossessions between July and October. With the full impact of the Budget yet to hit us, it's looking like a miserable end to the year.
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Iain Swatton
Director at Exemplar Financial Services
TSB’s latest 0.3% rate hike will hit buyers and those remortgaging hard at the worst possible time. With council tax set to rise and the cost of living already sky-high, this added pressure is not what households need. Mortgage payments are climbing, stretching budgets already under strain. It's tough news all around in an already challenging environment.
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Rohit Kohli
Director at The Mortgage Stop
While the government continues to claim that its Budget hasn't impacted working people, with these interest rate hikes I don't think that that position is tenable any longer. The markets continue to expect fewer rate reductions than before the Budget as a result of the government's spending plans and these are now being felt very clearly in workers' pockets.
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Ben Perks
Managing Director at Orchard Financial Advisers
This week the UK mortgage market has all the predictability of my toddler's tummy, and she currently has a nasty bug. The Budget announcement a couple of weeks ago seems to have set off a banking norovirus: it is highly contagious and lenders are throwing everything up.
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Justin Moy
Managing Director at EHF Mortgages
This is the second set of increases announced by TSB this week, and it just shows how nervous mortgage lenders are about fixed-rate pricing. With no clear end to this recent turbulence, it's important to be ready to make quick, but informed, decisions on new mortgage deals, just in case this trend continues well into 2025.
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Michelle Lawson
Director at Lawson Financial
A new day with a new lender further increasing rates. With the increasing rates and the disastrous repossession figures this morning, things are definitely stormy. It wasn't so long ago that things were looking up. Now the exact opposite is the case.
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Simon Bridgland
Director at Charwin Private Clients
The giant game of pass the parcel continues as lenders hand over the predicted increase of costs in wholesale markets onto the end user. Borrowers looking for a new deal may currently feel they have nothing to feel festive about as we enter the last real month of business before the festive holidays are upon us. With rates steadily increasing on fixed money, borrowers may be tempted to opt for variable tracker rates, especially after seeing base rate drop and the hope of further cuts next year.