Greycoat specialists share information concerning the UK´s current housing trends. The UK real estate market remains stable despite fewer homes for sale, sellers increasing home prices, and landlords increasing rental prices. The buyers’ budgets are hanging on by a thread. Now, top mortgage lending companies are increasing their fixed rates.

That is a blow to buyers searching for a home and homeowners looking to refinance. Lenders who are all-in on the price hike are NatWest, Santander, and Nationwide. Greycoat assures that their price hikes started on April 30th. Last week, HSBC, Leeds, Accord, and Barclays raised their prices.

The rising rates originated when city analysts believed they would receive seven cuts. The number of actual cuts happening this year is between two and three. This overestimation pushed the lenders to raise fixed rates on customers. According to Greycoat real estate agency specialists, they also plan to keep the increase longer. Even though the first cut is happening in August, it won’t ease price hikes.

Meanwhile, the Bank of England will decide whether to raise fixed rates next week.

The team at Greycoat Real Estate Agency reached out to lenders and other industry experts about this, and they found the increase disappointing. As Trinity Financial’s Aaron Strutt mentioned, he said most people expected lower fixed rates [from lenders].  

The higher rates will [push away potential buyers]. Strutt also said it wouldn’t surprise him if more lenders [follow the trend of] raising fixed rates. Greycoat Real Estate sympathizes with buyers eagerly awaiting a home. The challenging yet stable property market has worsened, and lenders believe raising fixed rates solves their problems. Buyers must make tough financial choices, and we hope they continue searching for new property or refinancing their mortgage. Whatever you decide to do, we want to help.