Nationwide has raised mortgage rates after “grim” inflation data which could signal a “marketwide reprice”.
From today (May 23), Nationwide said it is increasing selected fixed rates by up to 0.25 per cent.
This includes rates across its new business and existing customers moving home product ranges while switcher and additional borrowing rates remain unchanged.
Mint Mortgages & Protection director, David Stirling, argued that this change was somewhat inevitable, stating that “the writing has been on the wall for a few weeks”.
He explained that, with swap rates moving upwards, lenders have been forced to react.
“Nationwide and Atom Bank have both increased some of their product rates today and, coupled with yesterday’s grim inflation figures, it’s likely other lenders will swiftly follow suit,” he said.
“Borrowers dithering over booking rates should act now to avoid disappointment.”
Meanwhile, Lifetime Wealth Management mortgage and protection specialist, Katy Eatenton, warned that the market could see the general direction of rates go up for the immediate future.
“We could see a marketwide reprice in the wrong direction for borrowers,” she cautioned.
Additionally, Helix Financial Partners managing director, Adam Stiles, said: “It’s no surprise Nationwide have increased their fixed rates on the back of yesterday’s unexpected inflation rise.
“In turn, Swap rates have risen.
“We expect more lenders to follow suit in the coming days.”
A similar sentiment was expressed by Switch Mortgage Finance director, Elliott Culley, who said: “Nationwide are not the first and they will not be the last mortgage lender to reprice higher based on the latest changes to the economic outlook.
“With inflation data coming in higher than expected, economists are predicting only one more base rate cut this year, which has resulted in Swap rates increasing.”
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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