"Swap rates, on which mortgage pricing is based, have spiked as the market factors in expected future Bank Rate rises."
In a statement, Nationwide said: "In recent days swap rates, which mortgage pricing is based on, have increased at unprecedented levels in response to the current economic conditions as the market factors in further predicted rises in Bank Rate. In the last week alone, the two-year swap rate has increased by c160 basis points."
In response, the lender is increasing two, three, five and ten-year fixed rates by between 0.90% and 1.20%. Existing members 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.
For new customers moving home and first-time buyers, two and three-year fixed rates now start from 5.59%, five-year fixed rates from 5.19%, ten-year fixes from 4.89%, and two-year tracker rates from 3.19%, all with a £999 fee.
The Society is increasing shared equity rates by between 1.10% and 1.15%, while rates for the Society’s existing members 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 mortgages, will increase by 1.15%.
Henry Jordan, Nationwide’s director of mortgages, 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.”
