Mortgage rates shift again: what landlords and buyers need to know now
If you've been watching mortgage rates closely, you'll have noticed another round of adjustments from the high street. Halifax, Virgin Money and Accord have all made moves on their pricing in early August, and the changes affect different groups in different ways. Some borrowers are facing higher costs, whilst others are catching a break. Understanding what's happening and why matters, because your next mortgage decision could save or cost you thousands.
Halifax raises rates for homebuyers
Halifax has increased its residential purchase and remortgage rates by up to 0.12% for homemovers and first-time buyers. Remortgage customers, those doing a product transfer, and anyone taking a further advance will see a smaller increase of 0.05%. These changes came into effect this week and affect fixed-rate products across the board.
For context, the average two-year fixed mortgage rate currently sits at 6.6%, whilst five-year fixes are averaging 4.81%. A 0.12% rise on a £200,000 mortgage might not sound like much, but over the life of a five-year fix it adds up. On a typical £250,000 property purchase, you could be paying an extra £30 to £40 per month depending on the product.
First-time buyers, in particular, should factor these changes into their decision-making. If you're in the early stages of saving for a deposit or getting a mortgage agreement in principle, timing matters. Rates don't move in one direction forever, but they do shift regularly. Getting locked in sooner rather than later can protect you from further increases, although it's always worth shopping around to find the best deal for your circumstances.
Virgin Money mixed bag for landlords and buyers
Virgin Money's changes tell a more complicated story. The lender has increased its buy-to-let product transfer rates by up to 0.15% across selected two, three and five-year fixed terms. That's a steeper hike than what Halifax is offering to residential customers.
However, Virgin has cut rates on residential purchases and remortgages. Two-year fixed rates are down 0.07%, and five-year fixes have been trimmed by 0.06%. Remortgage customers moving to a two-year product are also seeing a 0.07% reduction, with five-year remortgage fixes down 0.08%.
This creates an interesting pattern. If you're a landlord looking to switch your buy-to-let mortgage, you're facing higher costs. But if you're a homeowner remortgaging onto a new deal, you've got some breathing room. The takeaway here is that different lenders, and even different products from the same lender, are moving at different speeds. This is exactly why getting independent mortgage advice or doing thorough comparison work pays off.
One lender bucking the trend
Accord has stepped in with rate cuts on buy-to-let mortgages, reducing all 80% loan-to-value fixed rates by 0.1% from 6 August. This move stands out because most of the market is currently moving upwards. For landlords, Accord's decision offers a genuine opportunity to review their portfolios and consider whether switching could deliver better value.
The fact that different lenders are moving in different directions shows the market isn't uniformly tight. There's still competition, and that competition creates opportunities for borrowers who are willing to shop around. If you're a landlord with an Accord mortgage expiring soon, or considering a remortgage with another lender, it's worth getting quotes from multiple providers.
What this means for your next decision
Rate movements like these are part of the normal rhythm of the mortgage market. The Bank of England base rate is currently 3.75%, and lenders adjust their pricing based on their own funding costs, risk appetite and competitive position. When you're facing a mortgage decision, three things matter most:
- Get quotes from multiple lenders, not just your current provider
- Look at the overall cost over the full term, not just the headline rate
- Consider whether fixing for two or five years makes more sense for your situation
If you're remortgaging soon, the latest Virgin Money cuts on residential deals might represent genuine savings. If you're a landlord, Accord's rate reduction is worth investigating, but also check what other specialist BTL lenders are offering. The property market moves constantly, and mortgage pricing moves with it. Staying informed and taking action when rates shift in your favour is how you build real wealth in property.