Nationwide has become the third high street lender to introduce mortgage rate increases today, with increases across its fixed rate range coming into effect from tomorrow.
The lender will be increasing selected fixed rates by up to 0.25% and includes deals across its new business, existing customer moving home, switcher and additional borrowing ranges.
Nationwide has urged brokers looking to secure existing products to submit applications by 8pm today, Monday 29th April.
Reaction:
Dariusz Karpowicz, director at Albion Financial Advice:
“Today’s announcement from Nationwide, making them the third major lender to announce rate hikes of up to 0.25%, certainly casts a shadow over the mortgage market on this already gloomy Monday.
“The impact of these increases will be felt by home movers, remortgagers, and existing borrowers seeking new deals, setting the stage for potentially challenging times ahead.
“These changes, set to take effect from tomorrow, signify a tightening of conditions for many, mirroring the broader economic pressures at play.
“It’s undeniably a tough day for borrowers and a stark indication of the turbulent waters we may have to navigate in the near future.”
Justin Moy, managing director at EHF Mortgages:
“More sadness in the mortgage market today, Nationwide is the third major lender to increase rates in the last few hours.
“At least we can reserve rates for borrowers up to 90 days in advance with Nationwide, but the notice given is still short of the 24 hours brokers would like to be able to help as many clients as possible beat these price hikes.
“The sun may have finally popped its head out today from the grey clouds of the last few weeks, but there is little sunshine on the mortgage market at the moment.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Nationwide is the third major big six lender behind Natwest and Santander to announce increases to their interest rates today making for a challenging start to the week and we close off on April.
“The market is doing its best to douse the remaining optimism of potential buyers, hopefully this will not extinguish their hope in buying a property.”
Ben Perks, managing director at Orchard Financial Advisers:
“The tide has definitely turned, with lenders pulling products and increasing rates across the board; and Nationwide are no exception.
“It’s difficult to think of a lender that hasn’t put rates up in the past week. Amidst this turbulence, a semblance of stability would certainly be welcomed.
“One can’t help but wonder: when will the Government step in to intervene?”
Katy Eatenton, mortgage and protection Specialist at Lifetime Wealth Management:
“Nationwide have given six hours notice of their rate increases today.
“This is not acceptable considering most advisers will finish at 5pm to go and spend time with family.
“We cannot give thorough advice within a three hour turnaround!”
Gary Bush, financial adviser at MortgageShop.com:
“Nationwide Building Society is the latest UK mortgage lender to join the high street party of rate increases today – struggling households are hardly being thrown a life belt by this dramatic action today.
“This particular lender, the largest building society in the country thinks a handful of hours notice is justified to warn its customers and partner financial firms.”
Elliott Culley, director at Switch Mortgage Finance:
“The most disappointing part of Nationwide’s announcement on rate increases today is the short timeframe it has given brokers and borrowers to secure rates before they are gone.
“Borrowers need to be proactive in the current market because in a blink of an eye rates will be gone.”
Jack Tutton, director at SJ Mortgages:
“It seems if one lender jumps, the rest follow quickly with Nationwide increasing their rates after both NatWest and Santander amending their products earlier today.
“Lenders however are being left with little choice but to increase the cost of borrowing, market conditions have worsened in recent weeks which is tightening their margins.
“This leaves them no alternative but to increase mortgage rates.”
Aaron Strutt, product and communications director at Trinity Financial:
“When three of the big lenders whack up their rates on the same day it is not generally long before the other banks and building societies follow their lead.
“These rate increases will put some people off buying for the time being as many borrowers expect rates to come down rather than go up.
“Even with these rises most fixes still undercut the Bank of England base rate which has not moved since August last year.”
The Intermediary has reached out to Nationwide for comment.
