Nationwide ups rates on new business and switcher fixes and trackers – Mortgage Finance Gazette
Nationwide has made increases across selected fixed-term and tracker new business and switcher products, effective today (3 March).
For new business, the lender has upped rates across its new member moving, first-time buyer, shared equity and remortgage products.
The 80% loan-to-value (LTV) new member moving two-year fixed product with a £999 fee has a new rate of 4.79% while the fee-free version has gone up to 5.09%.
The 75% LTV first-time buyer two-year fixed product with a £999 fee has increased to 4.79% and the fee-free option has gone up to 5.24%.
The new member moving/first-time buyer shared equity two-year tracker product has gone up to 4.54% with a fee of £999.
For new business remortgage products, the five-year fixed 80% LTV fee-free option has increased to 4.64% while the £999 fee product has a rate of 4.49%.
For existing customers, Nationwide has upped rates across multiple products including existing members moving home, shared equity, additional borrowing, green additional borrowing, switcher and switcher additional borrowing.
The 80% LTV existing members moving home two-year fixed with a £999 fee has a new rate of 4.79% while the fee-free option has gone up to 5.09%.
The 75% LTV existing member moving home, shared equity five-year fixed product has a rate of 4.29% with a fee of £999 while the fee-free version has a new rate of 4.59%.
All green additional borrowing/green switcher additional borrowing rates from 60% LTV to 90% LTV across two- and five-year fixes are now 4.04% with no fee.
The 60% LTV switcher five-year fixed product has risen to 4.18% with a fee of £999 while the fee-free version is 4.18%.
Advantage Financial Solutions advising director Steven Morris says: “Nationwide is the latest lender to reverse their fixed rate pricing. Given their service timescales aren’t suffering and other lenders have repriced similarly, this is almost certainly due to swap rates.”
“Lenders’ cost of borrowing money to then lend to customers for fixed-rate mortgages has increased in the last few weeks, by 0.3% – 0.4%. Given this is a problem being faced by all lenders offering fixed-rate mortgages, it seems inevitable others will follow suit, at least to some extent.”
“For now, we hope these changes are things ‘settling down’, rather than a total U-turn on the recent rate cuts we have seen so far in 2023.”
EHF Mortgages managing director Justin Moy comments: “We have seen a few lenders increase rates over the last few weeks, with a combination of higher swap rates, and some lenders struggling with processing their recent increased activity.”
“This may also suggest a further base rate increase and is still in the Bank of England’s remit, and will affect other lenders as a result. Analysts still predict that the base rate will fall towards the end of the year, but there may be some bumps along the way.”
Self Employed Mortgage Hub.com director Graham Cox adds: “A couple of lenders have started raising mortgage rates this week. The catalyst has been higher borrowing costs for lenders in the swaps market over the last month.”
“Andrew Bailey’s ‘nothing is decided’ comment yesterday, indicating it’s possible the base rate will rise again on March 23rd probably didn’t help either.”
“It’s likely we’ll see more major lenders increase their rates slightly over the coming days. But they could easily go back down again if any good news on the economy comes along.”