The Co-operative bank for intermediaries has lifted fixed-rate loans for new business and existing mainstream and landlord mortgage ranges by up to 59 basis points amid turmoil in the bond markets.
The lender’s changes cover:
New business
Residential
- Selected two-, three- and & five-year fixes increased by up to 59bps
Professional mortgage
- Selected two- and five-year fixes increased by up to 28bps
Buy to let
- Selected two- and five-year fixes increased by up to 37bps
Help to Buy
Welsh scheme only:
- Selected two- and five-year fixes increased by up to 20bps
Retention
Residential
- Selected two-, three- and & five-year fixed products increased by up to 49bps
Buy to let
- Selected two- and five-year fixes increased by up to 37bps
Help to Buy
- Selected two- and five-year fixes increased by up to 20bps
The move from the lender, which completed its £780m sale to Coventry Building Society earlier this month, comes as bond markets have taken fright over the impact widespread global tariffs might have if incoming US President Donald Trump carries through his threats.
As part of that assessment, investors are looking again at Chancellor Rachel Reeves’ October Budget plans to spend £70bn over five years and pricing UK borrowing at a higher rate.
Two-year swap rates rose to 4.416% on 10 January from 4.303% a month ago, while five-year rates lifted to 4.182% from 3.868% over the same period, according to Chatham Financial.
Yesterday, Virgin Money, Vida and Zephyr Homeloans either pulled products or raised rates by as much as 25 basis points, citing rising swap rates in some cases.