Mortgage rates continue to rise, with lenders raising prices by up to 80 basis points, but Gen H has canceled today’s planned increase.
Nottingham Building Society has increased interest rates by 40 to 80 basis points and withdrawn a number of products in an update today.
The lender had previously announced increases to residential and corporate rates for buying and letting new businesses from midday, but said it had further updated its rate card due to market movements.
Newcastle Building Society has emailed estate agents this afternoon to say it is withdrawing dozens of products by the end of business today.
Barclays previously revealed that rate hikes of up to 55 basis points would come into effect tomorrow and Moneyfacts confirmed that the overall average mortgage rate rose to 5.48% today, a jump of 59 basis points since the start of the Iran war.
But Gen H has told advisers it is canceling the planned increases, which were due to come into effect today at 5.30pm.
The email states: “Because of the way our systems and financing work, we can adjust our prices very quickly.
“And unlike many other lenders, we do not build large buffers into our rates, because we always try to offer your customers the lowest possible rates.
“So if the swap rate rises, we have to quickly raise the price. But if the swap rate falls, we can just as quickly lower the price.
“Yesterday, Trump indicated that he was postponing his attacks on energy sites in Iran and that swap rates fell.
“We realized we could pull off this happy U-turn. And here we are.
“It’s hard to keep track of all this volatility, but we think lower rates are better rates, so we didn’t want to waste time.”