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Barclays, NatWest, TSB and Virgin Money hike mortgage rates

Barclays, NatWest, TSB and Virgin Money hike mortgage rates
Matt Browning
Written By:
Matt Browning

A quartet of lenders hiked their mortgage rates in the last week, as the average two-year fix for higher loan-to-value (LTV) deals hit 6%.

As mortgage providers have continued to edge up their prices, the lowest rate in the two-year sector for a 95% LTV deal is 0.55%.

A longer-term deal at the same LTV is 5.55%, compared to 5.1% a year ago, according to Rightmove’s data.

Earlier this month, YourMoney.com’s mortgage round-up reported that TSB and HSBC bucked the trend of mortgage rate rises by dropping their rates, but that trend has quickly reversed.

Read on for the full breakdown of mortgage rates’ movements from lenders.

TSB introduces 0.75% increases

TSB announced that, from 25 April, rates will increase up to 0.75% across its residential range and several products in its buy-to-let (BTL) section.

Hikes of up to 0.3% will hit its two-, three- and five-year fixed deals for first-time buyers, homemovers and remortgage products.

Shared ownership and shared equity products will also increase by up to 0.75%.

The lender will strip its two-year tracker house purchase and remortgage products, plus five-year fixes for the same offer. It will also increase its house purchase and remortgage rates by up to 0.45% for short- and long-term offers.

Elsewhere, existing borrowers at Barclays have seen slight rises to the tune of 0.1% on its purchase, remortgage and reward ranges.

The hikes leave its five-year fixed premier product at 60% LTV from 4.36% to 4.46%. This includes a £699 fee too.

A two-year fix at 60% LTV with a £999 fee has risen to 4.94%, while the 75% LTV has gone up to 5%, and the 85% LTV deal has increased to 5.77%.

NatWest and Virgin Money join the rate surge party

Meanwhile, NatWest has boosted its mortgage rates by the same amount, meaning its fee-free two-year fixed rate switcher product to finance 60% of your property is 5.15%. The deal with a £495 fee rose to 4.99%, and its £995 fee is priced at 4.79%.

At 75% LTV, a two-year fixed rate fee-free product is 5.25%, while the £995 fee is 4.94%.

Another high-street lender in the form of Virgin Money made some slight price amendments. Those changes were applied to its selected product transfer fixed rates and saw prices rise by 0.1%, and these will commence at 4.38%.

The lender’s 90% LTV purchase Fix and Switch fee-saver felt a 0.05% nudge up to 5.52%, while the professional version crept up by 0.02% to 4.82%.

Further, selected remortgage fixed rates now start at 4.79% – a hike of 0.1% – and five-year greener new-build fixes had a slight increase of 0.05%, as prices start at 4.44%.