HSBC mortgage rate rise. Is this the trend for 2017?
HSBC have made changes to their fixed rate mortgage range, which could trigger a like for like response from other lenders in 2017.
HSBC stated all its fixed rate products would see a rise in rate of between 0.1% and 0.5%. It also announced it was discarding its 0.99% 2 year fix.
The lender reported that it constantly reviews mortgage rates, and is always quick to pass on any savings to its customers. But, as the cost of long term swap rates increased during November, they felt they had to reflect this in their range.
Market analysts have put down the increase in swap rates to the ongoing global political and economic uncertainty in the wake of results such as Brexit, the US election and Italy’s referendum. The uncertainty puts pressure on interest rates and rises become inevitable.
If other lenders follow HSBC, 2017 could see the end of the record low rates across the board. Therefore, it is vital to act now to source your mortgage or switch to a new deal before rates go up.
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