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Nationwide has increased its selection of fixed-term and tracking products, new business products, and switches effective today (March 3).
For new business, the lender has raised rates for its new members, relocators, new buyers, equity, and remortgage products.
A new member with 80% credit to value (LTV) moving a two-year fixed product with a fee of £999 has a new rate of 4.79%, while the free version has risen to 5.09%.
The 2-year fixed product with 75% first-buyer LTV of £999 increased to 4.79%, while the commission-free option rose to 5.24%.
The two-year share tracking product of a new member moving/first time purchase rose to 4.54% with a fee of £999.
For new remortgage business products, the five-year fixed 80% commission-free LTV has increased to 4.64%, and the £999 commission product has a rate of 4.49%.
For existing customers, Nationwide has raised rates on several products, including relocation of existing members, general capital, incremental borrowing, green incremental borrowing, transition, and switching incremental borrowing.
Existing members with 80% LTV moving home for two years on a fixed fee of £999 have a new rate of 4.79%, while the free option has risen to 5.09%.
The five-year fixed product with 75% LTV for an existing member moving home with shared capital has a 4.29% rate with a £999 commission, while the free version has a new 4.59% rate.
Additional borrowing rates for all green additional loans/green switches from 60% LTV to 90% LTV for two- and five-year fixes are now 4.04% no fees.
The five-year fixed product 60% LTV Switcher has gone up to 4.18% with a £999 fee, while the free version is 4.18%.
Stephen Morris, director of consulting at Advantage Financial Solutions, says: “Nationwide is the latest lender to change its flat rate. Considering their terms of service were unaffected and other lenders changed prices in similar ways, this is almost certainly due to swap rates.”
“The cost of loans for on-lending to customers on mortgage loans with a fixed interest rate has increased over the past few weeks by 0.3-0.4%. Given that this problem is faced by all lenders offering fixed rate mortgages, it seems inevitable that others will follow suit, at least to some extent.”
“For now, we hope these changes are a lull and not a complete reversal of the recent rate cuts we have seen so far in 2023.”
EHF Mortgages Managing Director Justin Moy comments: “We have seen several lenders raise rates over the past few weeks, coupled with higher swap rates, with some lenders struggling to process their recent increased activity.”
“It could also indicate a further increase in the base rate and is still within the purview of the Bank of England and will impact other lenders as a result. Analysts still predict that the base rate will fall by the end of the year, but there may be some bumps along the way.”
Graeme Cox, director of Self Employed Mortgage Hub.com, adds: “Several lenders have started raising mortgage rates this week. The catalyst was higher borrowing costs for lenders in the swap market over the past month.”
“Andrew Bailey’s ‘nothing settled’ comment yesterday indicating that the base rate would rise again on March 23 probably didn’t help either.”
“We will likely see other major lenders raise their rates slightly in the coming days. But they could easily fall again if there is good news about the economy.”
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