Nationwide, late to the rate reductions in January, have reacted much quicker in February with an increase of up to 0.3% on fixed rates across their range.

In particular, 2 year and 5 year Fixed deals are affected, for purchases and some remortgage options, whilst Product Transfer 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 2 February.

Justin Moy, managing director at EHF Mortgages said, “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.

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“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.”

Lewis Shaw, owner and mortgages expert at Shaw Financial services said, “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“They could quite feasibly be withdrawn within a week or two.’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.”

Gary Bush, financial advisor at the MortgageShop.com said, “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.”