In response to the continuing volatility of swap rates Keystone Property Finance has announced it will be slightly increasing its five-year fixed rate products.
These will be withdrawn from 6pm on 9 January with new rates available from 10 January.
To access current rates the full mortgage application and application fee must be submitted by 5:59pm on 9 January.
John Charcol head of marketing Nicholas Mendes (pictured) comments on what he sees as a shift of focus to higher rather than reduced rates.
“Swaps have increased every day since last week. With the gap narrowing sub 4% on a five-year fixed, or 4.5% on a two-year fixed rate are no longer viable for lenders.
“I suspect the next rate change from the lenders who had announced cuts last week will be upwards. It will be interesting to see which lenders have enough appetite for volume, even at skinny margins, to hold on to their current low rates longest!”
Mendes points out that swaps have risen again today (9 Jan) and yesterday we had the latest KPMP and REC job survey for December highlighting a resilient labour market and growing increase in starting UK salaries.
“This latest development means the Bank of England is expected to keep interest rates higher for longer rather than decrease in March which was widely tipped a fortnight ago prompting a fall in Gilts and correlating swap market.
“Much of which had fuelled the lender downward repricing in recent weeks with some rates reaching new milestones but these are now not looking likely to be beaten or on the market for long”.
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