Banks have continued to increase the cost of mortgages, despite the new chancellor’s efforts to restore confidence.
NatWest, for example, will today increase rates on two and five-year fixed-rate deals by up to 0.86 percentage points. Its cheapest two-year fix for those buying a home will go up from 5.97% to 6.37%, an increase of £52 a month on £200,000 to £1,247.
TSB said it would increase rates on two-year fixed deals for existing customers by up to 0.95 percentage points and up to 1.4 points for buy-to-let landlords, while Barclays will put up the cost of some low-deposit mortgages to more than 6%.
The two-year swap rate, an expectation of the Bank of England base rate in the future used to determine the cost of fixed-rate mortgages, is down to 4.69%. However, it is still above where it was before the mini-Budget.
