Barclays Pulls Cheapest Mortgage as Inflation Fears Mount

Yahoo Finance UK··GB·Read original
3▲0 ▼3Impact / 5
Summary · why it matters

Barclays has withdrawn its cheapest two-year fixed mortgage from the market after soaring fuel prices triggered fresh inflation fears. The high-street bank's market-leading 4.75pc two-year fix and 4.93pc five-year deal will no longer be available to new customers from Sept 29, with Barclays saying its two-year fixed-rate products would increase by 30 basis points to 5.05pc and the five-year fix to 5.03pc. The conflict in the Middle East pushed oil prices above $108 on Monday, and average pump prices for diesel have hit a record 199.18p, according to the RAC, while swap rates sat at 4.69pc on Monday, according to comparison site Moneyfacts. It is the second time this month that Barclays has increased its rates, after raising its two-year fix from 4.55pc to 4.75pc on Sept 16, and comes after Nationwide raised fixed-rate mortgages by 0.30 percentage points, with HSBC and TSB also increasing their rates. The average two-year fix was 5.91pc on Monday, according to Moneyfacts, and the Bank of England held rates at 3.75pc on Sept 17, though expectations are mounting that there could be another increase in the Bank Rate before the end of the year.

Impact on assets 4

Financials▼ · 3 stocks
Barclays PLC
BARC
▼ NegativePricingrelevance

Barclays withdrew its cheapest 4.75pc two-year fix and raised its two-year and five-year fixed mortgage rates by 30bp, a direct price hike on its own products.

HSBC Holdings PLC
HSBA
▼ NegativePricingrelevance

HSBC is cited as one of the lenders that also increased its fixed-rate mortgage rates, following Nationwide's 0.30pp rise.

Nationwide Building Society
NBS
▼ NegativePricingrelevance

Nationwide raised fixed-rate mortgages by 0.30 percentage points, part of the wave of lender rate increases cited in the article.

Others▲ · 1 stocks

Off-coverage companies 3

TSB BankPrivate▼ Negative
Pricingrelevance

TSB is mentioned as also increasing its mortgage rates amid the broader repricing.

Moneyfacts GroupPrivate± Mixed
relevance

RAC LimitedPrivate± Mixed
relevance

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