Nationwide Building Society is amending its fixed and tracker mortgage rates.
In recent days swap rates have increased at unprecedented levels in response to the current economic conditions as the market factors in further predicted rises in Bank Rate.
In the last week alone, the 2-year swap rate has increased by c160 basis points.
To ensure Nationwide’s mortgage pricing remains sustainable, it is increasing 2-, 3-, 5- and 10-year fixed rates by between 0.90% and 1.20% – less than the increase in swap rates.
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 Bank Rate.
The rates for new customers moving home and first-time buyers include 2-year fixed rates starting from 5.59% with a £999 fee, 3-year fixed rates starting from 5.59% with a £999 fee and 5-year fixed rates starting from 5.19% with a £999 fee.
10-year fixed rates start from 4.89% with a £999 fee and 2-year tracker rates now start from 3.19% with a £999 fee.
The Society is increasing shared equity rates by between 1.10% and 1.15%, while rates for the Society’s existing members moving home will increase by between 0.90% and 1.20%. Green Additional Borrowing rates will increase by 0.70%.
Rates on the Society’s mortgages for the over 55s, including Retirement Interest Only, Lifetime Mortgage and Retirement Capital and Interest Mortgage will increase by 1.15%.
Henry Jordan, Nationwide’s director of mortgages, said: “The changes made to our new business range are 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.
“These latest changes will ensure we are able to continue lending in a way that is sustainable to borrowers of all types.”
