The changes were made to reflect the current interest rate environment
Nationwide Building Society has announced that it is amending its fixed and tracker mortgage rates, effective Wednesday, September 28, due to unprecedented increases in swap rates over the past week.
The mutual said it is increasing two-, three-, five- and 10-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 the Bank of England base rate.
The rates for new customers moving home and first-time buyers include two-year fixed rates starting from 5.59% with a £999 fee; three-year fixed rates starting from 5.59% with a £999 fee; five-year fixed rates starting from 5.19% with a £999 fee; 10-year fixed rates starting from 4.89% with a £999 fee; and two-year tracker rates starting from 3.19% with a £999 fee.
The building society is increasing shared equity rates by between 1.10% and 1.15%, while rates for its existing members moving home will increase by between 0.90% and 1.20%. Green additional borrowing rates will increase by 0.70%.
Rates on Nationwide’s mortgages for the over-55s, including retirement interest only, lifetime mortgage, and retirement capital and interest mortgage will increase by 1.15%.
Nationwide said its first-time buyer mortgages also come with £500 cashback, while those looking to remortgage to the building society can choose between a £500 cashback or free standard legal fees.
Henry Jordan, director of mortgages at Nationwide, said the changes made to the new business range were 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,” Jordan added. “These latest changes will ensure we are able to continue lending in a way that is sustainable to borrowers of all types.”
In the last week alone, the two-year swap rate has reportedly increased by around 160 basis points.
