Last sub-4% fixed deals disappear as rates rise

Last sub-4% fixed deals disappear as rates rise
Christina Hoghton
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Christina Hoghton

HSBC is the latest lender to increase its rates, upping the cost of a range of its mortgage deals this week.

Significantly, the lender will no longer offer its 3.99% five-year fixed rate.

It had been the last sub-4% fixed mortgage standing after other lenders increased their fixed rate products in response to rising funding costs.

NatWest, TSB and Santander also announced rate increases this week.

David Hollingworth, associate director at L&C Mortgages, said: “There has been a large amount of pricing activity, with lenders shifting rates regularly to adjust to the fact that markets now anticipate that base rate may take longer to fall than had previously been hoped.

“This has forced fixed rates back up as funding costs have risen leading to HSBC being the last lender standing in the sub-4% bracket. That may catch some borrowers by surprise when the rate story this year has generally been one of falling rates.

“There will still be plenty of jockeying for position as the market remains extremely competitive, but in the short term, we may still see more movement in mortgage rates.”

Related: Average mortgage rates tick up week-on-week