Nationwide increases rates as SWAPs edge up

Nationwide has just announced increases to both tracker and fixed rates, by up to 0.25%, as  SWAP rates have increased over the last few weeks.

Those borrowers affected include new and existing client deals, plus those looking to borrow more or switch rates.

Newspage asked brokers for their reaction to this change, especially in light of Santander’s reductions announced earlier on Monday.

Justin Moy, managing director at EHF Mortgages, “Another mixed day for mortgage rates, with Nationwide increasing its rates just when Santander is cutting theirs.

“Swap rates have been steadily increasing over the past few weeks, so increases are not unexpected at the moment but just emphasise where a mortgage broker can be worth their weight in gold for any borrower.

“Lenders will inevitably be dancing around the rates over the coming weeks, balancing cost, service levels and appetite for certain types of business. An interesting few weeks coming up for borrowers and brokers alike.”

Elliot Culley, director at Switch Mortgage Finance said, “Normal service has been resumed as the fragile and unpredictable interest rates start to trend upwards rather than down.

“As quickly as rates start rising, they can equally start reducing. Borrowers should remain calm in the current climate as some key data points are upcoming and positive data could stop the current slump.

“Rates are still predicted to fall over 2024 so there is noneed to hit the panic button just yet.”

Rohit Kohli, director at The Mortgage Shop said, “This goes to show how topsy turvy the mortgage market is.

“One major lender, Santander, makes reductions while another increases rates. This reflects the precarious position everyone is facing and with Nationwide increasing today will add more stress to some people who were seeing some possible light at the end of the tunnel.

“I think this does demonstrate that if your mortgage is coming to an end you need to be prepared to act quickly as no one can be certain as to what is going to happen to lenders’ rates at the moment.”