A popular building society has decided to raise the interest rates on mortgages, which could affect homebuyers in the UK. This move comes as other lenders have been lowering their rates in the past few months. Coventry Building Society has chosen to increase rates on certain packages, following the Bank of England’s decision to raise the base rate. GB News has reported that Coventry Building Society will be raising fixed rates for new and existing borrowers with 65 per cent-75 per cent loan-to-value ratios.
Experts are concerned that this increase by Coventry Building Society may be a sign of more rate hikes to come in the future. Iain Swatton, the director at Exemplar Financial Services, believes that global tensions, especially in the Middle East, are starting to impact the market. He warned that other lenders might follow suit in the upcoming days due to ongoing uncertainty in the UK economy. Borrowers who have been waiting for the right time to make a move should consider taking action before conditions become more challenging.
Adam Stiles, the managing director at Helix Financial Partners, mentioned that the mortgage market continues to be unpredictable, with Coventry’s rate increase being the latest development. He noted that SWAP rates have increased significantly recently, possibly due to rumors and statements from the Treasury regarding the upcoming Budget, the situation in the Middle East, and unexpected economic data from the US. Stiles predicts that lenders may not decrease rates further on certain products for the time being.
The decision by Coventry Building Society to raise mortgage rates highlights the impact of global events on the UK housing market. Homebuyers and existing borrowers should stay informed about any changes in interest rates and consider their options carefully. With uncertainties in the economy and potential future rate hikes, it is essential to stay proactive and seek advice from financial experts to make informed decisions regarding mortgages. Keeping a close eye on market trends and being prepared for fluctuations can help individuals navigate through challenges in the housing market effectively.