Nationwide and Virgin Money increase mortgage rates

The mortgage market has been in turmoil this week with a whole raft of rate increases across the board, with very little notice. We're expecting more to come until the markets calm down. Stability here is key and we won't see rates calming down until we see this. It's important to get a rate locked in sooner rather than later to hedge any further increases. If they drop again you can secure lower rates at that point.

Two lenders joined at the hip have both come out and set up their stall for the weekend with increases sure to set off the more nervous borrower. With rates set to increase by upto 0.2% with both Nationwide and Virgin from tomorrow. This comes hot on the heals of NatWest and Barclays who have both issued notices of increases from tomorrow. This increment alone roughly slaps on an extra £360 a year to a mortgage of £150,000.

Four rate rises in a single week and we are not done yet. Nationwide and Virgin Money both hiking by up to 0.2% from tomorrow, right behind NatWest and Barclays. That extra 0.2% adds roughly £360 a year on a £150,000 mortgage. Not pocket change.
Until geopolitical tensions settle, lenders will keep repricing. Swap rates are reacting to global uncertainty and lenders are passing every basis point straight to borrowers. If you are sitting on a deal or thinking about one, lock your rate in now. You can always switch to a lower rate later if markets calm down. Waiting, on the other hand, only costs you more.

Rates are now going up at breakneck pace and borrowers should be very conscious of this fact. Lenders large and small are upping rates across the board, often quite noticeably. Events in the Middle East are creating turmoil in the mortgage market.

This has not been a great week for borrowers at all. Markets are highly volatile and are pricing in increased inflation, which is sending swap rates north and mortgage rates with them. In under a fortnight, the entire mortgage landscape has changed.