Lenders Move Ahead of Bank of England Rate Decision with Mortgage Hikes

Several major lenders in the UK have increased mortgage rates ahead of the Bank of England's Monetary Policy Committee (MPC) decision on interest rates. NatWest, TSB, and Coventry Building Society are among those that have hiked their rates.

NatWest has increased its two-year fixed buy-to-let purchase mortgages by up to 30 basis points (bps), while TSB has raised all fixed house purchase and remortgage rates by up to 0.25%.

Skipton Building Society is also increasing its fixed mortgage rates, while Principality Building Society will raise rates across selected residential deals.

Nick Mendes, mortgage technical manager at John Charcol, attributed the rate increases to rising wholesale funding costs and a greater risk of higher interest rates. He warned borrowers not to wait for the MPC decision to secure an affordable mortgage option.