Major lenders including Barclays, Halifax, HSBC, TSB and Skipton will increase interest rates by up to 20 basis points tomorrow.
In the first hours of the business day, many of the largest lenders have sent an email to brokers informing them of the latest rate hikes, including to monitor deals.
Barclays is increasing prices on a range of residential products, including purchase agreements, remortgages and product transfers, many of which are between 15 and 19 basis points.
But some of the strongest increases are on existing Mortgage Customer Rewards (EMC) deals, with a five-year tracker product with an 85% LTV increasing by 20 basis points, from 4.55% to 4.75%.
Barclays’ two-year EMC Reward fixed product with a 70% LTV and a £1,999 fee will also increase by 20 basis points, from 4.76% to 4.96%.
Halifax will increase prices on all two-, three- and five-year fixed rates for movers and first-time buyers by up to 20 basis points tomorrow.
Two-year trackers will increase by up to 10 basis points for both purchase and mortgage refinancing customers.
TSB will also increase rates for selected homes tomorrow by up to 20 basis points and buy-to-let rates by up to 15 basis points.
Tomorrow, BM Solutions will increase rates for landlords by up to 19 basis points.
HSBC will increase its prices tomorrow, but will not warn brokers in advance about the extent of the changes.
Skipton Building Society has also announced it will increase costs tomorrow and has already published its new products on the intermediary website.
John Charcol, technical manager at mortgage adviser Nicholas Mendes, said: “Six major lenders have gone on course today.
“To convert [the changes] In this context, an increase of 20 basis points on a typical £200,000 mortgage over 25 years adds around £23 per month, or around £276 per year.
“On a £300,000 mortgage the same increase adds closer to £35 per month, almost £420 per year.
“It’s not a dramatic jump per se, but it’s the third or fourth step in a few weeks, and each step comes after the last for anyone still shopping.
“None of this is surprising. Swaps have risen since the Middle East escalated, with the two-year SONIA rising from 3.978% a month ago to 4.177% today and over five years from 4.008% to 4.231%.”
Mendes warns that borrowers should brace for further interest rate revisions.
He says: “When a lender as prominent as Halifax moves, the rest of the market tends to join in within days.
“The June CPI lands on Wednesday and is expected to fall to around 2.6%, but I wouldn’t read too much into it.
“The increase in energy price caps will be reflected in the July figures, and the war in Iran is still ongoing, so any relief here is likely to be short-lived.
“The Bank of England meets the following week, on July 30, and the vote-sharing has become aggressive, with two members already supporting an immediate increase to 4%.
“My money is still on hold, but the debate within the MPC tells you which way the risk is going, and an increase, at this meeting or the one in September, seems more likely than a decrease.”
Trinity Financial product and communications director Aaron Strutt says: “This rate change in Halifax likely means Lloyds will also ramp up its low-cost solutions, which undercut virtually all other lenders by a fair margin.
“Halifax has a decent two-year fix at 4.33% and a five-year fix at 4.37% available until close of business today.
“We’re starting to see most lenders increase their fixes and Halifax is making its trackers even more expensive, meaning it will no longer offer variable rate deals below 4%.
“We can probably expect a few more rate changes in the coming days, so it’s unlikely to be worth waiting to book a rate if you’re buying somewhere or taking out a new mortgage.
“The continuation of the war in Iran is not good news for many reasons, and it certainly does not contribute to any calm in the money markets.”