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Virgin Money, Metro, and Skipton BS the latest to push rates higher

Journalist: Justin Moy, Contributing Editor

ended 07. May 2024

Skipton, Metro and Virgin Money increase various rates across their residential and buy-to-let deals.

Newspage asked mortgage brokers for their views, and how this will impact borrowers over the coming weeks.

13 responses from the Newspage community

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Justin MoyVerified
Managing Director at EHF Mortgages
Once again, we see a group of lenders collectively raising rates. In the race to avoid being the cheapest, they all adjust by similar amounts to uphold their positions. This trend is particularly noticeable among smaller lenders who might inadvertently become market leaders. It's disheartening news, especially when we require more accessible borrowing options. Uncertainty surrounding our most crucial monthly commitments and basic needs is far from ideal.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
Yet another week begins with sudden rate rises and minimal notice given by lenders. Let's keep our fingers crossed for favorable inflation figures, or else it seems unlikely that anything will change before autumn rolls around!
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Michelle LawsonVerified
Director at Lawson Financial
The relentless flood of rate rises persists. Here's hoping for a period of calm to follow soon, allowing the waters to recede and fairness and parity to return to the beleaguered housing market.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
The anticipation builds as we await the Monetary Policy Committee's announcement on Thursday. All hopes are pinned on them to halt these relentless rate hikes and rescue borrowers from ongoing misery. Anything short of a cut won't be enough; bold action is needed. Let's see some courage and a 0.5% drop.
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Craig FishVerified
Director at Lodestone Mortgages

Amidst heightened anticipation for the Bank of England's interest rate decision, it appears that the April showers persist in the mortgage market. Lenders have intensified their actions, further dampening the hopes of already stretched borrowers with yet more rate increases. This is terrible news and it seems to be never ending. Whilst not directly linked, the sooner the MPC make that first rate cut the better. Consumers and businesses throughout the UK need a glimmer of hope.
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Stephen PerkinsVerified
Managing Director at Yellow Brick Mortgages

Today, borrowers are feeling the brunt of announced rate increases from multiple lenders, as the lowest-rate hot potato continues to be tossed around. These increases serve as a stark indication that any hopes of a Base Rate reduction on Thursday are mere wishful thinking.
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Dariusz KarpowiczVerified
Director at Albion Financial Advice
Blow after blow - the recent rate hikes from Metro, Skipton and Virgin Money are painting a grim picture for the housing market. These increases are likely to impact borrowers significantly over the coming weeks. Potential buyers might find themselves squeezed further financially, which could cool demand and add stress to an already tense economic environment. For a healthy economy, we need stability and confidence in the housing market, but these rate increases could deter new entrants and slow down overall market activity.






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Ken JamesVerified
Director at Contractor Mortgage Services
It feels like we are in a surreal game of Mortgage Bingo, the question is are we playing for a line or a full house.
Brokers heads have been spinning all day as we battle to get hold of clients and secure rates ahead of the imminent rate changes, lenders are giving little to no time to deal with these changes and you must question the planning that has gone into these decisions. Having had a rest over the Bank holiday weekend we have come back to what has turned into the Tuesday from Hell. The MPC are due to meet this week will they do something to still the waters, or will they shirk away from making some decisive decisions.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
Further rate hikes will cause chaos amongst borrowers, already suffering from a confidence crisis. In the latest financial blow to homeowners, major lenders have announced further hikes in mortgage rates, an almost weekly occurence now. This latest surge will compound the housing market turmoil, severely undermining the confidence of borrowers. Thousands already find themselves trapped, unable to afford new homes or relocate. The relentless rise in interest rates is casting shadows over the future of the British dream of homeownership, leading to widespread market stagnation.
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Gary Bush0
Financial Adviser at MortgageShop.com
Metro, Skipton, Virgin Money, and The Mortgage Works, a division of Nationwide, all came back to work after the Bank Holiday with carnage for mortgage holders on their minds it seems by increasing their fixed mortgage rates. On the upside Barclays Bank has come riding over the hilltop with some great reductions in their mortgage products - this follows the market feel now that fixed rates should be pegged lower than recently. It's no wonder that consumers are confused at the moment on the direction of travel for interest rates with this madness.
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Richard Jennings CeMAP0
Founder & Managing Director at Richard Jennings Mortgage Services
Early optimism of some rate reductions, following Barclays announcing rate cuts, have well and truly been dashed with multiple lenders all confirming furth rate rises.

The only contsant so far of 2024 is the uncertainty sorrounding mortgage rates.

Thursday and the MPC committee meeting now has more pressure than ever to give borrowers some light at the end of a very bleak tunnel.
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Scott Taylor-Barr0
Principal Adviser at Barnsdale Financial Management
We are currently in a very volatile market in terms of interest rates. Part of this is down to the wider economic environment, with inflation, house prices, employment and other statistics, indexes and figures having an impact on the money markets that lenders rely on for their fixed rate funding. But we had these factors previously, so what's changed to give us such a rapidly changing market now? The other part of the story is the time element that lenders are having to build into their financial modelling, only a few years ago they only had to account for an application coming in maybe three months before completion, but with the Mortgage Charter most have now moved the re-mortgage/product transfer window to six months, added to which purchase business is seeming to take longer to complete; be that due to build times with brand new property, or delays with getting searches and other enquiries answered on almost all other transactions.
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Hannah BashfordVerified
Director at Model Financial Solutions
Forget the Monday blues its turmoil Tuesday. One minute we have lenders decreasing rates, the next a flood of them increasing- surely it's time the lenders gave borrowers a break!
All eyes will be on the Bank of England this week and their decison around the base rate. I, for one, will be hoping the monetary policy comittee are brave enough to stick their necks out and announce a rate cut in order to stem the flow of lender increases and provide some stability for borrowers.