HSBC confirms change for customers 'from today' with new costs

HSBC confirms change for customers 'from today' with new costs Experts have given their take as a barrier was broken HSBC has made an announcement, with changes affecting customers immediately. It said it was raising mortgage rates again from today, putting more of the remaining sub-5% deals at risk as brokers warn borrowers are being forced to make decisions at increasingly short notice. Are mortgage rates going up? Brokers say yes, for now - swap rates have steadied, but most expect further increases this week while funding costs stay high. The banking giant confirmed it will increase rates across a number of its residential and buy-to-let mortgages from today, breaking the 5% barrier. The cheapest two-year fix is going from 4.76% to 5.04%, while its cheapest five-year fix is going from 4.72% to 5.06%. The latest repricing comes after weeks of increases across the mortgage market as higher wholesale funding costs have pushed lenders to withdraw or reprice some of their cheapest deals. The increases will also affect parts of HSBC's buy-to-let range. Aaron Strutt, product and communications director at London-based Trinity Financial, said there could be more rate hikes this week. He said: "Rates are still getting more expensive, but the swap market seems to have stabilised a bit because there have been a couple of mortgage rate reductions. The mortgage market is still very active, particularly with borrowers keen to secure a rate quickly to avoid paying more than necessary. There may well be more rate hikes this week." Tracey Dixon, buy-to-let mortgage specialist and owner of Cardiff-based Pure Mortgage and Protection, said lenders giving borrowers less than 24 hours’ notice of increases was creating a scramble for borrowers, brokers and solicitors. She said: "I have recently had to ask clients to make same-day decisions simply to avoid losing an affordable deal. HSBC’s latest increase is another reminder that fixed mortgage rates can move regardless of whether Bank Rate changes. Borrowers approaching the end of a deal should start reviewing their options early, because in this market, waiting even one day can mean paying more." Babek Ismayil, founder and CEO of OneDome, said: "Conditions for first-time buyers (FTBs) may be challenging at present in the mortgage market, but in the property market they are very favourable, as they are in a position to negotiate very hard on price." Adam Stiles, managing director of London-based Helix Financial Partners, said continued market volatility meant further mortgage rate rises were likely. He said: "Rate hikes are going to keep happening until the market volatility stabilises. Unfortunately, the volatility is currently showing no signs of abating. We expect to see more rate hikes for the foreseeable future, and hope we see some calm as soon as possible." Dariusz Karpowicz, director at Doncaster-based Albion Financial Advice, said another competitive sub-5% option now appeared to be heading out of the market. He said: "Less than 24 hours' notice and another sub-5% option heads for the exit. The 4.76% two-year and 4.72% five-year fixes were among the last genuinely sharp deals on the shelf and borrowers are now being asked to make same-day decisions on 25-year commitments. "The frustrating part is that nobody can point to anything on the horizon suggesting this reverses soon. Swap rates have steadied slightly, but that is hardly a recovery. If your deal ends within six months, start reviewing now. In this market, waiting a day costs you money."