Santander said that, in its new business range, all standard residential fixed rates will go up by between 0.23 per cent and 0.34 per cent.
The lender will increase all residential new-build exclusive fixed rates by between 0.25 per cent and 0.34 per cent, and all residential large loan exclusive fixed rates will rise by between 0.23 per cent and 0.33 per cent.
Also, in its new business range, the lender will up all BTL fixed rates by between 0.23 per cent and 0.33 per cent.
Within its product transfer range, selected residential fixed rates are increasing by between 0.05 per cent and 0.20 per cent, and selected BTL fixed rates are increasing by between 0.05 per cent and 0.15 per cent.
Sub-four per cent deals could fade from the market temporarily
The latest figures from Moneyfacts today show that there are 17 residential mortgage products under four per cent on the market currently. Lenders include AIB, Danske Bank, HSBC and Santander.
Brokers have said that sub-four per cent mortgages may disappear from the market in light of rising swap rates and low lender margins.
Chris Sykes, technical director at Private Finance, said that sub-four per cent rates could briefly disappear this week.
He pointed to rising swap rates over the past few weeks, which had left “very little margin” for lenders.
However, Sykes said that rate increases would typically range from 0.2 to 0.3 per cent.
He noted that it could be a “good opportunity” for potential borrowers to fix a rate, as “we may well have seen the bottom of rates for a little while”.
“You can always lock something in now and monitor the market for a month or two to see if things change,” Sykes noted.
He continued that the mortgage pricing trajectory was dependent on the next few inflation and base rate figures, and it may be unlikely for sub-four per cent mortgages to return until the base rate was cut, as it would give a “level of confidence to the market”.
Nicholas Mendes, mortgage technical manager and head of marketing at John Charcol, said: “Initial market expectations factored in multiple bank rate reductions throughout the year, commencing in March. However, recent data from both domestic and internationally, particularly the US, suggests that such reductions may not materialise until at least June.
“Given the nature of the market, those who may be hesitant to commit to a deal should act quickly to secure a deal. While we anticipate a reduction in fixed rates, the timeline for this adjustment may be somewhat longer than initially expected.
“It is important to note that, even if you secure a deal, there is still flexibility to make changes close to completion, should a more favourable offer become available.”
