HSBC and Coventry raise rates on fixed mortgages in response to crisis in the Middle East
📖 Full Retelling
<p>Experts say the Iran war could cause an energy price shock that pushes up UK inflation, in turn forcing up interest rates</p><p>HSBC and Coventry building society are the first big lenders to announce they are increasing rates on their fixed mortgage deals after the <a href="https://www.theguardian.com/world/series/middle-east-crisis">Middle East crisis</a>, with brokers predicting others are likely to follow.</p><p>Experts have said the war <a hre
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
HSBC and Coventry raise rates on fixed mortgages in response to crisis in the Middle East Experts say the Iran war could cause an energy price shock that pushes up UK inflation, in turn forcing up interest rates HSBC and Coventry building society are the first big lenders to announce they are increasing rates on their fixed mortgage deals after the Middle East crisis , with brokers predicting others are likely to follow. Experts have said the war could trigger an energy price shock that pushes up UK inflation, which may in turn force the Bank of England to increase interest rates . That uncertainty has affected the money market swap rates that lenders use to decide the rates on their new fixed mortgages. Aaron Strutt at the broker Trinity Financial said: “HSBC and Coventry are the first big lenders to announce rate hikes based on the funding cost increases brought on by the chaos in the Middle East.” He added: “It seems almost certain we are going to see a lot more rate changes over the coming days, so if you are on the hunt for a mortgage, it is worth locking into a new deal now.” HSBC said it would be increasing rates on a large number of its residential and buy-to-let mortgage deals with effect from Friday, though at the time of writing the new pricing was not available. Coventry building society said new rates take effect from Monday (9 March). It said it would be increasing all fixed rates for new and existing borrowers. The warnings of higher mortgage costs deal a blow to homebuyers and those looking to remortgage. About 1.8m fixed-rate mortgage deals are due to end in 2026, and most of these borrowers will need to get a new home loan. Households have benefited from cheaper home loans in recent months after the Bank of England cut interest rates four times in 2025 to bring the base rate down to 3.75%, and until Friday, another rate cut this month had looked very likely. David Hollingworth at the broker L&C Mortgages said: “We are now seeing the first big-name ...
Read full article at source