What is more Cleary predicted a number of other specialist lenders following suit to ensure they remain profitable.
Precise Mortgages will raise a number of fixed mortgage rates by 0.20% tonight as it looks to pass on the rising cost of swap rates, its managing director Alan Cleary (pictured) has confirmed.
Residential and buy-to-let increases will take place, with changes to seconds and bridging potentially happening in future.
Cleary predicted a number of other specialist lenders following suit to ensure they remain profitable.
He said: “Tonight we’re going to raise our fixed rate pricing by 20 basis points on a lot of our fixed rates because swap rate pricing is up.
“Generally specialist lenders have not passed on the swap cost and have been feeling the pain since January.”
He estimated that since January swap rate pricing has surged by 35 and 37 basis points for 2 and 5-year funding respectively.
Cleary added: “I’ve heard a number of other lenders are in the process of raising their rates.
“It’s inevitable – a business model that doesn’t pass on additional costs to its customers will not work.
“It would suit me if the rest of the market followed.”
It's understood Vida Homeloans is also set to raise its rates.
Guy Batchelor, sales and marketing director of Vida Homeloans, said: “As you would expect, we are reviewing both our competitors’ positions and our own funding strategy at all times.
“Given this change, we will review Precise’s new rates and respond accordingly.”
Virgin Money increased its 65% LTV 2-year fix with a £995 fee from 1.34% to 1.43% this week.
