HSBC Raising Mortgage Rates

HSBC has announced it is raising some mortgage rates amid warnings to borrowers that the cost of new home loans is expected to go up in general.

HSBC is increasing fixed-rate deals for new borrowers with a 10% deposit by 0.3 percentage points to 6.27%. However, to attract "safer" borrowers it cut costs on a fixed-rate deal for those offering a 25% deposit.

From Friday 26th September the increases will first be rolled out at thier online banking service First Direct raising two-year fixed rate deals by 0.2%. Also from tomorrow Abbey, the UKs second largest mortgage lender is cutting its two-year fixed-rate deals for people with a 15% deposit and adding to the number of three and five-year deals.

The Yorkshire Building Society, earlier this week changed a number of mortgage deals. Yesterday the BBA announced that approvals for house purchases were 64% down on the same period last year. The lowest figure since the figures began being collected in September 1997.


Related Posts
Mortgage Approvals at New Low