Nationwide, late to the rate reductions in January, reacted much quicker in February with an increase of up to 0.30% on fixed rates across their range.
In particular, 2-year and 5-year fixed deals were affected, for purchases and some remortgage options, while product transfer (PT) deals are unaffected this time.
Newspage asked brokers for their opinions and thoughts on the announced changes, which are due to go live on the 2nd of February.
A Nationwide spokesperson said: “We continually review our mortgage rates and have made a number of cuts in recent months.
“However, we’re making some increases on selected products from tomorrow to ensure that our new business mortgage rates remain sustainable and that we can continue to offer the best possible service to brokers and borrowers alike.
“Even with these changes, Nationwide remains well-positioned in the market to support borrowers of all types and our rates for existing members switching remain unchanged.”
Justin Moy, managing director at EHF Mortgages:
“Given Nationwide was late to the table of rate cuts in January, it’s surprising to see them react so quickly in February, but this does show that the cost of funds is increasing, and lenders are having to readjust their rates with little notice.
“Nationwide does allow brokers to reserve deals in advance, which is an important benefit, especially in a market where rates are increasing.
“No change for existing clients looking for a new deal, but those looking to refinance or purchase will be affected.”
Elliott Culley, director at Switch Mortgage Finance:
“With lender margins so tight right now, it’s not surprising to see some lenders dip in and out of being the most competitive.
“Whereas some lenders have changed rates on either purchase or remortgages, Nationwide have increased across the board, which implies they got extremely busy very quickly.”
Gary Bush, financial adviser at MortgageShop.com:
“Sadly, Nationwide appears to have been hit with a deluge of new applications that has forced them to increase their fixed rates again.
“With the Bank of England holding the base rate, this mortgage rate price war is far from over and we expect more lender rate decreases shortly.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“When Nationwide announced their reduced rates on 23rd January, I said: ‘Nationwide has been off the boil for weeks, so it’s unsurprising that they’re taking the chance to get some business through the doors. However, don’t expect these to be around for long. They could quite feasibly be withdrawn within a week or two.’
“And here we are. It was blindingly obvious they wouldn’t be able to sustain the very low rates with the upward direction of swap rates.
“This is a stark reminder that, as much as we hope things are on an even keel, don’t take anything for granted, and certainly don’t sit on your hands if you’re due to renew.”
Darryl Dhoffer, mortgage expert at The Mortgage Expert:
“So, in barely eight days, Nationwide are now repricing and increasing select interest rates across their range.
“In all fairness they have been leading the field on some rates for this eight-day period, when for the previous six weeks they were not even on the same playing field as some other lenders.
“So, with a mammoth three hours’ notice, working to Nationwide’s 5pm finish, we have plenty of time to notify borrowers of these changes, and work well into the night updating and placing cases.”
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“Although expected, this is sad news. Nationwide were market leading for a short time and probably inundated with applications so can afford to reprice.
“However, they allow you to reserve rates, so even though the products will be gone, there is still a window to take advantage of them.”
Rohit Kohli, director at The Mortgage Stop:
“Nationwide were the last of the major lender to reduce their rates so its disappointing to see them raise their rates so quickly.
“From what we have seen so far, it’s probably due to an influx of applications given how competitive they have been.
“However, these changes are going to worry thousands of borrowers who were thinking of switching.”
Akhil Mair, director at Our Mortgage Broker:
“As mortgage brokers, we acknowledge Nationwide’s swift response with rate increases in February, especially on fixed rates.
“While these adjustments may seem challenging for some clients, it’s crucial to understand the broader economic landscape driving these changes.
“We remain committed to helping our clients in navigating through these adjustments and finding the most suitable mortgage options tailored to their needs.”
