Keystone Property Finance to withdraw and reprice rates

In a broker note the lender said: “Due to the continued market conditions and the increase in swap rates, we will be withdrawing our current product offering at 5:30pm today.”

It added that new increased rates will be available on 21 August.

In order to access current rates, brokers need to submit a full mortgage application and application fee by 5:29pm today.

Swap rates have ticked up in recent days. According to Chatham Financial, the two-year swap rate was 5.669 per cent on 16 August, and rose to 5.733 per cent yesterday. As of 12:30pm 18 August, the rate is slightly down on Thursday but higher than Wednesday at 5.697 per cent.

Meanwhile, the five-year swap fell slightly from 4.987 per cent on Wednesday to 4.938 per cent yesterday, but has since crept up to 5.044 per cent.

Specialist funding lines more volatile

Nicholas Mendes, mortgage technical manager at John Charcol, said: “Funding lines for the specialist lenders and fintech are more volatile than the traditional mainstream lenders and building societies.

“While I wouldn’t expect to see lenders in the market follow suit given the recent increase in swaps by withdrawing and reprice their fixed rates immediately, the recent increase in swaps will no doubt have put the breaks on any lenders looking to reprice over the next few days to wait and see how the market develops.”

He added: “We are certainly not of off the woods, and would recommend clients approaching the end of their fixed rate or in the midst of an application to speak with a broker to ensure they secure the best deal but also regularly review in the event rates settle and reprice downward in a few weeks.”