Swap rate volatility drives latest round of mortgage pricing adjustments
Nationwide Building Society and Virgin Money have raised interest rates across their mortgage portfolio, with increases of up to 0.20 and 0.22 percentage points respectively.
Nationwide’s changes affect new borrowers moving home, first-time buyers, remortgaging customers, and existing members seeking new deals.
For home movers joining Nationwide, all two-, three- and five-year fixed rates between 60% and 95% loan-to-value (LTV) have gone up, as have selected 10-year fixes. The new starting rates are 3.87% for two-year fixes, 3.99% for three- and five-year fixes, and 4.45% for 10-year products.
First-time buyers face higher rates on two-, three- and five-year fixes up to 95% LTV. The minimum rates now stand at 4.03% for two-year fixes, 4.14% for three-year, 4.22% for five-year, and 4.45% for 10-year options.
Remortgage customers will also see selected two- and five-year fixed rates increase between 60% and 90% LTV. The lowest available remortgage rate is now a two-year fix at 3.94% with a £1,499 fee.
Existing Nationwide members moving home will see higher rates across all two-, three-, five- and selected 10-year fixed products, regardless of LTV. The new entry points mirror those for new home movers.
The lender has also raised selected fee-free additional borrowing and switcher rates.
Earlier this week, Barclays increased rates on its two- and five-year fixed products.
The rate hikes come despite the Bank of England reducing the base rate from 4.25% to 4% earlier this month. Swap rates – which play a significant role in determining the cost of fixed rate mortgages – have moved higher.
Meanwhile, Virgin Money, acquired by Nationwide last year, is also increasing selected exclusive purchase, buy-to-let, and product transfer mortgage rates today.
Within its exclusive purchase range, five-year fixed rates have increased by up to 0.22 percentage points, starting from 4.22%. Two- and five-year fixes at 80% LTV have risen by up to 0.17 percentage points, beginning at 4.14%. The five-year fix at 85% LTV with an £895 fee will move up by 0.13 percentage points to 4.29%.
Rates for two- and five-year fixes at 90% LTV, as well as the two-year fixed fee-saver at 95% LTV, have increased by 0.17 and 0.06 percentage points respectively, with pricing starting at 4.55% and 4.99%.
For purchases at 95% LTV, two- and five-year fixed rates have gone up by up to 0.1 percentage points, starting from 4.99%. Shared ownership rates now begin at 4.18%.
Buy-to-let borrowers will see two- and five-year fixed rates with a £2,195 fee rise by up to 0.15 percentage points, starting from 4.07%. At 60% LTV, two- and five-year fixes with a 1% fee have increased by 0.1 percentage points, from 4.03%. Two- and five-year fixes at 60% and 75% LTV with a £995 fee have also risen by 0.1 percentage points, starting from 4.26%. Fee-saver options for two- and five-year fixes have increased by 0.1 percentage points, starting from 4.57%.
Within the product transfer range, selected two- and three-year fixed rates have increased by up to 0.1 percentage points, starting from 3.84%. Five-year fixed rates have been raised by up to 0.13 percentage points, with starting rates at 3.91%.
Virgin Money has stated that two-year fixed rates at 65% and 75% LTV with a £1,995 fee will require a minimum loan of £200,000, while the equivalent five-year fix will require a minimum of £100,000.
Buy-to-let fixed rates have risen by 0.05 percentage points, starting from 3.82%.
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