Changes impact first-time buyers, home movers, remortgagers, and buy-to-let investors
Nationwide and Virgin Money have both announced rate increases across a range of fixed rate mortgage products.
Nationwide has raised rates on select two-, three-, and five-year fixed mortgage products by up to 20 basis points (bps). For first-time buyers, the lender’s two-year fixed rates now start at 4.29% at 60% loan-to-value (LTV), while three-year rates begin at 4.19% at the same LTV.
The lowest five-year fixed rate for new borrowers is now 4.14% at 60% LTV. Nationwide has also adjusted rates for home movers, remortgagers, and existing customers looking to switch rates or borrow more, with the cheapest option being a five-year fix at 4.09%.
As part of its latest rate adjustments, the lender has lowered rates on some products, including a reduction of up to 11bps on select 10-year fixed rates and up to 15bps on higher LTV two-year fixed rates. The lender’s 10-year fixed rates now start from 4.49% at 60% LTV.
Nationwide – one of the UK’s largest mortgage lenders – has also dropped rates on certain two-year tracker products by 0.25%, aligning with the recent Bank of England base rate cut.
Virgin Money, which was acquired by Nationwide last month, has also raised rates on several of its fixed rate offerings.
Select two- and five-year purchase rates have gone up by as much as 15bps, starting from 4.29%. Rates for its Shared Ownership and Retrofit Boost products also saw increases, with Retrofit Boost rates now beginning at 4.64%. For higher-value loans over £1 million, Virgin Money increased rates by up to 20bps, starting at 4.44%.
In the buy-to-let segment, Virgin Money also raised rates by up to 20bps on two- and five-year fixed products, with some options starting as low as 3.67% with a 3% fee. Select product transfer rates also rose by up to 25bps, with the lowest new rate starting at 4.19%.
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