Nationwide Follows Santander and NatWest with Significant Mortgage Rate Increases

Nationwide has become the latest lender to increase mortgage rates, following similar moves by Santander and NatWest. The new rate hikes will impact a broad range of Nationwide’s mortgage products, including options for First Time Buyers, Home Movers, Existing Customers Moving Home, and Remortgages. Additionally, the increases apply to the Switcher and Additional Borrowing ranges.

Rohit Kohli, Director at Romsey-based The Mortgage Stop, described the recent rate changes as extraordinary. He said, “The pace, scope, and frequency of these rate adjustments over the last week or so dwarf what was seen during the Liz Truss period. It’s rare for so many lenders to react this swiftly and so aggressively.”

Kohli pointed out the immediate impact on borrowers: “Affordability is tightening rapidly. First-time buyers are losing ground almost daily, and those looking to remortgage face direct costs from any delays. With ongoing global uncertainty driven by the war, lenders are expected to remain cautious, likely pushing rates higher.”

Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, urged borrowers planning to remortgage soon to act quickly: “If you’re due to remortgage within six months, it’s vital to start the process immediately to secure the best available rates.”

Adam Stiles, Managing Director at London-based Helix Financial Partners, described the hikes as “hefty.” He explained, “Lenders are struggling to gauge market volatility, leading to not just frequent but substantial rate increases. A 0.35% rate jump is definitely significant.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, linked the rise to inflation concerns tied to the Middle East conflict. He advised, “It may be wise to lock into a mortgage deal now to avoid potential higher rates later, especially since you can still switch pre-completion.”