As many people predicted, it looks like we have seen the first lender to raise mortgage interest rates since it was announced that UK inflation had only decreased marginally. Nationwide building society have announced that from the 26th of April they will raise interest rates on mortgages, ending a streak of only reducing rates over the last few months.
Why Are Nationwide Raising Interest Rates On Mortgages?
It was announced a week or so ago that UK inflation had dropped, but unfortunately it had not dropped a great deal. Meaning that previous interest rate hikes from the Bank of England had not been as effective as we had all hoped. Sparking predictions that a further base rate hike would be very likely in May 2023. This in turn caused a lot of people to predict that this would mean mortgage interest rates would also increase. For a few days, lenders all sat on their hands, not wanting to be the first to deliver the bad news to borrowers. In fact, a lot of lenders carried on as normal, even reducing rates.
But, news came out of Nationwide building society today to say that they will be increasing many of their current residential mortgage interest rates. Although not explicitly confirmed by Nationwide, this is likely a direct reaction to the news that the base rate will likely increase in May 2023.
What Are The Changes To Mortgage Interest Rates From Nationwide?
From tomorrow, Wednesday the 26th of April, Nationwide are increasing selected fixed rates for new borrowers moving home and first time buyers by up to 0.25%. They’re also increasing fixed and tracker rates for new borrowers looking to remortgage up to 85% LTV by up to 0.45%. As of yet, there are no changes to any existing customer rates as part of this update.
Here is a full breakdown of the product rates that will be increasing:
New Borrower Moving Home:
- 60% LTV 2-year fixed with a £999 fee = 4.64%
- 60% LTV 2-year fixed without a fee = 4.89%
- 60% LTV 3-year fixed with a £999 fee = 4.44%
- 60% LTV 3-year fixed without a fee = 4.84%
- 60% LTV 5-year fixed with a £999 fee = 4.19%
- 60% LTV 5-year fixed without a fee = 4.34%
- 75% LTV 2-year fixed with a £999 fee = 4.64%
- 75% LTV 2-year fixed without a fee = 4.89%
- 75% LTV 3-year fixed with a £999 fee = 4.44%
- 75% LTV 3-year fixed without a fee = 4.84%
- 75% LTV 5-year fixed with a £999 fee = 4.19%
- 75% LTV 5-year fixed without a fee = 4.34%
- 80% LTV 2-year fixed with a £999 fee = 4.64%
- 80% LTV 2-year fixed without a fee = 4.89%
- 85% LTV 2-year fixed without a fee = 4.89%
First Time Buyer:
- 60% LTV 2-year fixed with a £999 fee = 4.64%
- 60% LTV 2-year fixed without a fee = 5.24%
- 60% LTV 3-year fixed with a £999 fee = 4.49%
- 60% LTV 3-year fixed without a fee = 4.99%
- 60% LTV 5-year fixed with a £999 fee = 4.29%
- 60% LTV 5-year fixed without a fee = 4.44%
- 75% LTV 2-year fixed with a £999 fee = 4.64%
- 75% LTV 2-year fixed without a fee = 4.89%
- 75% LTV 3-year fixed with a £999 fee = 4.44%
- 75% LTV 3-year fixed without a fee = 4.84%
- 75% LTV 5-year fixed with a £999 fee = 4.19%
- 75% LTV 5-year fixed without a fee = 4.34%
- 80% LTV 2-year fixed without a fee = 5.24%
- 85% LTV 2-year fixed without a fee = 5.24%
- 90% LTV 2-year fixed without a fee = 5.24%
Remortgage:
- 60% LTV 2-year fixed with a £999 fee = 4.59%
- 60% LTV 2-year fixed without a fee = 4.94%
- 60% LTV 3-year fixed with a £999 fee = 4.34%
- 60% LTV 3-year fixed without a fee = 4.69%
- 60% LTV 5-year fixed with a £999 fee = 4.24%
- 60% LTV 5-year fixed without a fee = 4.34%
- 75% LTV 2-year fixed with a £999 fee = 4.59%
- 75% LTV 2-year fixed without a fee = 4.94%
- 75% LTV 3-year fixed with a £999 fee = 4.34%
- 75% LTV 3-year fixed without a fee = 4.69%
- 75% LTV 5-year fixed with a £999 fee = 4.24%
- 75% LTV 5-year fixed without a fee = 4.69%
Speak To a Mortgage Advisor About Rising Mortgage Interest Rates
Avoiding high interest rates is a priority for most mortgage borrowers, and with the help of a mortgage advisor, you can do exactly this. We can’t force mortgage lenders to reduce their rates unfortunately, but what we can do is help you to secure the most competitive mortgage product for your own circumstances. A product that is affordable and manageable for you.
To learn more about how Oportfolio can help you, please feel free to give our team a call today to see how we can help.
