Nationwide confirms steep mortgage rate hikes

Nationwide Building Society has increased its 3, 5 and 10-year fixed rates by between 0.90% and 1.20%.

The markets are now predicting a steep increase in the Bank of England base rate, which has filtered through to an increase in swap rates – which impact the cost of lenders’ funding.

Existing customers looking to switch to a new deal or borrow more will see lower increases of between 0.55% and 0.85%, while tracker rates will increase by 0.50% in line with the recent increase in Bank Rate.

Henry Jordan, director of mortgages at Nationwide, said: “The changes made to our new business range are reflective of the current interest rate environment, which has seen mortgage rates increase across the market in line with a rapidly changing economic environment.

“Swap rates, on which mortgage pricing is based, have spiked as the market factors in expected future Bank Rate rises. These latest changes will ensure we are able to continue lending in a way that is sustainable to borrowers of all types.”

The rates for new customers moving home and first-time buyers include:

• Two-year fixed rates starting from 5.59% with a £999 fee

• Three-year fixed rates starting from 5.59% with a £999 fee

• Five-year fixed rates starting from 5.19% with a £999 fee

• Ten-year fixed rates starting from 4.89% with a £999 fee

• Two-year tracker rates starting from 3.19% with a £999 fee

The society is increasing shared equity rates by between 1.10% and 1.15%, while rates for Nationwide’s existing customers moving home will increase by between 0.90% and 1.20%. Green Additional Borrowing rates will increase by 0.70%.

Rates on the society’s mortgages for the over 55s, including retirement interest only, lifetime mortgage and retirement capital and interest mortgage will increase by 1.15%.

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