Santander, HSBC, Nationwide customers warned over crucial bill being hiked

Santander, HSBC UK and Nationwide customers have been issued an urgent warning as a crucial bill is hiked. Under the new Labour Party government, the Bank of England has cut its base rate - but mortgage borrowers at a string of top banks won't feel the benefit.

Several big mortgage lenders have raised interest rates this week, putting an end to many sub-4% deals on offer. Nationwide has also discontinued its sub-4% mortgage deals, while Santander has also hiked its terms, alongside HSBC UK.

Jack Tutton, Director at SJ Mortgages commented: "Yet more misery for mortgage holders as a result of the autumn Budget. The cost of borrowing for mortgage lenders has increased significantly following the Budget. This is due to the fear that inflation will start climbing again after the chancellor's new policies. As a result, it is unsurprising that HSBC, Virgin and now Nationwide are increasing their rates after a number of other lenders made the same decision last week."

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David Hollingworth, associate director at L&C Mortgages said: “The slew of rate changes in recent weeks has continued to push rates higher, reflecting the higher costs for lenders, as the market outlook for rates has edged toward a ‘higher for longer’ expectation.

“A number of lenders managed to hold fixed rates below 4%, until now. As sharper rates have fallen away an air of inevitability was building and now all major UK lenders’ fixed rates have once again edged back above 4%.” Mr Hollingworth went on and added: “Unwelcome as it is for borrowers, it’s important to note that there’s no sign of rates skyrocketing as they have in recent years.

“The Bank of England Base Rate is still expected to fall over time, but markets are questioning if the pace will be as rapid. Forecasting and perception changes frequently but for now borrowers should grab a rate whilst they can, to avoid missing out if the deal is subsequently withdrawn.”