Santander announces another rule change and 'all customers can do is pray'

Santander has announced it is hiking fixed rates for the second time in the space of a week, with selected fixed deals increasing by up to 0.26%. Selected residential fixed rates are rising by up to 0.26 per cent and ALL Buy to Let fixed rates are being hiked to 0.22 per cent from 0.05 per cent.

Speaking to the Newspage news agency, Stephen Perkins, Managing Director at Yellow Brick Mortgages, said: "The current market feels like a chaotic game of pass the parcel, where lenders are scrambling to avoid holding the lowest rate when the music stops.

"With rates increasing multiple times within the same week, advising clients becomes a real challenge in this ever-shifting landscape." Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said: "While it's frustrating that Santander's pricing wasn't accurate on Monday, they've at least granted brokers and borrowers until close of business tomorrow before implementing rate increases.

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"However, the promising start to the year feels like a distant memory, and it seems unlikely that rate reductions will be coming anytime soon." Dariusz Karpowicz, Director at Albion Financial Advice, said: "Santander's second rate hike in a week reflects the broader market's reaction to rising Swap rates.

"As we approach summer, this trend hints at a looming tightening of lending, presenting hurdles for borrowers. Urgent government intervention is warranted to aid current mortgage holders and first-time buyers, especially concerning affordability. Without decisive action, we face potential repercussions for the UK economy and property market. Implementing measures now can alleviate financial strain on households and foster a more robust market environment."

Ranald Mitchell, Director at Charwin Private Clients, said: "Santander hiking rates for the second time in a week is a good barometer for market sentiment and mortgage borrowers are going to get burned badly if this trend continues." Gary Bush, Financial Adviser at MortgageShop.com, said: "It's getting mighty sticky discussing mortgages with clients after the seemingly endless rate increases of this week! All we can hope/pray for is the Bank of England to save UK mortgage account holders with a base rate cut in the upcoming monetary policy meeting as the mortgage rate mood music turns very sour."