New Barclays, NatWest, Halifax rules for mortgage customers come with 'warning'

Each of the banks and high street financial institutions have been warned over hiked mortgage rates, adding cash to your repayments.

Barclays, Natwest and Halifax customers who have a mortgage have been warned over a shake-up this week. Each of the banks and high street financial institutions have been warned over hiked mortgage rates, adding cash to your repayments.

Barclays and Halifax say they will increase the rates on various home loan deals. It follows an upwards move by NatWest yesterday and rate hikes by Santander and TSB earlier in the week. Many of Barclays' fixed rate deals look set to increase by 0.2 percentage points.

Harps Garcha, Director at Brooklyn Financial, said that the "recent weeks have underscored the turbulent ride in the mortgage market" but noted that it "is far from over". They added: "Ongoing global unpredictability suggests this volatility will persist in the foreseeable future."

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Craig Fish, Director at Lodestone Mortgages & Protection added: "Nothing to see here! Just a temporary blip on the rate landscape following the recent increase in swap rates. Normal service has now resumed, swap rates are on the decline again, and lender rates will likely follow in the coming days and weeks, assuming there are no bloopers in the budget."

Ben Perks, Managing Director at Orchard Financial Advisers said: "Rates are rising, but optimism within the industry this week is higher than ever. With the inflation now at 1.7% the pressure on the Bank of England is becoming insurmountable. Whilst seeing increasing rates isn’t great, I’m optimistic that this is a short-term blip, and just lenders applying caution ahead of the Autumn budget."

Barclays currently boasts the second lowest five-year fix on the market for buyers purchasing with at least a 40 per cent deposit. From tomorrow, that deal will rise to 3.96 per cent. On a £200 mortgage being repaid over a 25 year term, that's the difference between paying £1,029 a month and £1,051 a month.