Nationwide is the latest lender to increase mortgage rates following inflation data
Nationwide Building Society is the latest lender to announce it is putting its fixed and tracker rate mortgages up following the latest inflation data.
From tomorrow, Friday 26 May, Nationwide is increasing selected fixed and tracker rates by up to 0.45%.
This follows mortgage rate increases from Bank of Ireland, Lloyds, Halifax, Kensington and Virgin Money. The Co-operative Bank and Platform have also changed rates.
Platform for Intermediaries is one of the few lenders lowering rates tomorrow; its two and three-year fixed-rate products decreased by up to 0.21%. Selected five-year fixed-rate products have been decreased by up to 0.04%.
The Consumer Prices Index (CPI) rose by 8.7% in the 12 months to April 2023, down from 10.1% in March and from a recent peak of 11.1% in October 2022.
Swap rates - a key determinant of mortgage borrowing costs - have steadily increased in recent weeks, and the latest inflation data has spooked the markets again. This is likely to be a temporary reaction.
Reuters points out that "British bond prices slid on Thursday as investors added to their bets that high inflation will force the Bank of England into more interest rate increases, with short-dated gilts on track for one of the biggest weekly falls of the last 20 years."
Aaron Strutt, product director at Trinity Financial, says: "Now that Nationwide has increased its mortgage rates, it will not be long before other big lenders follow their lead.
"If you are in the process of choosing a mortgage, it is well worth getting your application in because fixed and tracker rates are set to rise further over the coming weeks."
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The information contained within was correct at the time of publication but is subject to change
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