HSBC and Santander have increased interest rates on high loan to value (LTV) mortgages from today, with changes applying to new business and product switching deals, leading many to believe that other lenders will follow in their footsteps.

HSBC has increased its 85 per cent LTV new business range by between 0.2 per cent and 0.3 per cent.

The biggest rate increase has been applied to the bank’s two-year fix with a £999 fee rises from 2.54 per cent to 2.84 per cent.

Its fee-free five-year fix has increased by 0.2 per cent to 3.44 per cent, with all other products in the range, including the tracker, rising by 0.25 per cent.

HSBC has also increased its 90 and 95 per cent LTV product switch ranges for existing customers by 0.1 per cent.

Meanwhile, Santander is increasing its 85 per cent LTV two- and five-year fixed rates by up to 0.15 per cent.

The two-year fix at 2.79 per cent with a £999 fee has increased by 0.10 per cent, while the five-year fix at 2.94 per cent with £999 fee up by 0.15 per cent.

For product transfers increases of 0.05 per cent to 0.20 per cent have been made up on selected residential fixed rate and tracker products to 90 per cent LTV.

This increases mortgage payments for those who have a smaller deposit for their next purchase.

ETG Property syndicates purchase properties with cash, and are therefore not affected by changes in interest rates or mortgage deals.

If you want to start investing in property but have been unable to obtain a mortgage, or are unsure where to start, speak to us about our property syndicates and see how you can start benefiting from day one.