Thread by @faisalislam

Ten minutes walk from the Chancellor’s speech, a Birmingham mortgage broker shows me banks returning to the mortgage market today at rates 1.5 percentage points higher than a week ago - 5-6% - and that’s with a 40% deposit #BBCNewsTen

One of the features which was interesting was that the biggest increase in rates was for those with larger deposits, ie the curve was being flattened - rates were all between 5 & 6%. Unexpected.

As we left a mortgage for student landlord that had been close to agreement at 3.75% came back today at 7.25% - nearly double…brokers said smaller providers weren’t returning yet as didn’t know how to price. bigger beasts are pricing to ration demand. No one wants to be cheapest

What is driving is this is swaps market in turn driven by rising gilt yields.

One big mortgage lender pointed out that 2 year swaps, upon which 2 year fixes are based were up 216 bps (2.2 %age points) and 5 years up 219 bps.

Halifax, returns with 2 yr fix of 5.84% tomorrow…

Just looking at some responses in thread “thats with a 40% deposit” refers to fact that it might have been expected that low LTV borrowing would not see such leaps in mortgage rates, it doesn’t mean such a deposit is compulsory. Lenders still in 80-90% market, tho closer to 6%

My colleague @PeacheyK has written up the still ongoing tightening of the mortgage market… so yes mortgages on the market have been in decline since inflation started to rise…. But more withdrawn in six days after mini budget than in previous 10 months…

… and average mortgage rates up about 2% in 10 months to mini budget, then up 1.25% in 10 days for 2 year fixes and 0.75 for 5 years

Mortgage rates still rising as big lenders revise deals HT @peacheyk bbc.co.uk/news/business-…