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Sainsbury’s latest lender to raise mortgage rates

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  • 20/04/2018
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Sainsbury’s latest lender to raise mortgage rates
Sainsbury’s Bank has today raised rates across a raft of its mortgages, following in the steps of other lenders.

 

The bank has also withdrawn some of its competitive deals for buyers with a deposit of only 5%.

Rates have been raised on a number of purchase and remortgage, two-year and five-year products at 60% loan to value (LTV) up to 90% LTV with fees of £995.

And a two-year fix of 3.49% and a five-year fix of 3.99%, both at 95% LTV have been pulled.

Earlier this week the lender also withdrew a number of two and five-year fee-free mortgages across a range of LTVs.

A spokesman for Sainsbury’s Bank, said:  “Our products are proving very popular and in a competitive market we’re reviewing our rates while continuing to provide those looking for a mortgage or remortgage with great rates.

“We continue to offer a range of no fee 95% LTV products across both two and five year terms.

“The fee product was withdrawn based on customer feedback.”

 

Lenders raising rates across market

Sainsbury’s is just the latest in a series of lenders increasing rates.

Tesco Bank this week raised its fee-free five-year fixed-rates for purchase and remortgage from 60% – 80% LTV.

Barclays and NatWest are among other lenders to have recently pushed up costs citing market conditions.

Rachel Springall from Moneyfacts.co.uk said: “Mortgage rates have moved in an upward trajectory this month as lenders respond to rising swap rates and a potential base rate rise.

“This includes some of the biggest high-street brands too, such as Barclays, Halifax, Lloyds Bank, NatWest and Santander.

“Other lenders who have built up a good reputation for offering competitive rates are also now following suit over the last few days.

“Interestingly, Mark Carney has now cast some doubt over a potential rate rise for May, but still suggests a rise is on the cards this year.

“With this in mind, borrowers who have yet to take advantage of the lowest rates would be wise to review the deals currently available so that they don’t miss out.”

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