Nationwide hiking mortgage rates by up to 0.3%

This is really bad news for borrowers and feels like the mortgage market has entered a new and much more uncertain phase. When Nationwide, HSBC and Halifax are all moving rates upwards at the same time, it is a very clear signal about the direction of travel. The era of confidently expecting mortgage rates to keep falling has, for now at least, been interrupted. Could 6% become normal again? Absolutely, if inflation remains stubborn and markets continue pricing further Bank of England increases. We are not there yet, but it is no longer an outcome borrowers can simply dismiss. Anyone coming to the end of a mortgage deal should act early. Waiting for a better rate could now be an expensive gamble. Secure something, keep reviewing the market and switch if a better deal appears before completion. And the most worrying part, households are already dealing with higher energy, food and everyday costs. Another mortgage shock is exactly what millions of borrowers do not need.

The direction right now is up, and with Nationwide, HSBC and Halifax all moving on the same day, this is the market repricing rather than one lender's call. They're also moving three days before the Bank of England's decision, which tells you lenders aren't expecting cuts. On whether 6% becomes the norm, I'd be careful with that word. Six percent as standard would need inflation and the worries about government borrowing to stay elevated for a long stretch, and that isn't the central expectation. Range-bound and jumpy in the fours and fives feels far more likely than settling at six. The exact number also matters less than people think. Whether it's a five or a six, the monthly cost is already high enough to keep the market subdued. Thursday's decision, and then the Budget, will tell us more about the real trajectory than any single week of repricing.

Almost every lender is facing the same problem; Nationwide is the latest to join Santander, Halifax, and HSBC in raising rates, as swap rates show little improvement on the horizon.

Nationwide is one of a small handful that lets borrowers reserve a mortgage deal pre-application, so there is a window of opportunity for those looking for a new mortgage deal, including those seeking a Decision in Principle.

So we can only encourage borrowers to be document-ready and ready to make timely decisions with their broker; they will be proactive in watching for improvements, just in case rates do improve.

Swap rates are catching fire, forcing lenders to pull cheap deals off the table. Nationwide’s decision to hike fixed products by up to 0.30%, spanning first-time buyers, movers, remortgages, and switchers, follows hot on the heels of similar increases by HSBC and Halifax. The direction of travel is unmistakable which is upwards. While sub-4% headline rates briefly offered optimism, escalating wholesale funding costs mean lenders are repricing defensively. Could 6% become the norm again? For high-LTV tiers or shorter fixes, it is certainly within reach if swaps stay elevated. While a universal return to 6% across every product isn’t guaranteed, borrowers must brace for a higher for longer baseline. Cheap debt remains firmly in the rear-view mirror.

The calm before the storm has well and truly blown away. With Nationwide raising a wide range of fixed rates by up to 0.30% from tomorrow, on the back of hikes from HSBC and Halifax the same day, this is the clearest signal yet that rates are moving in one direction. Unless tensions in the Middle East ease, the new government under Andy Burnham produces a credible plan to settle the markets, and the Bank of England manages to calm investor nerves, the direction of travel looks like up, not down. Call it the perfect storm, although it isn't proving perfect for anyone who needs a mortgage. Six per cent as the new norm isn't a certainty yet, but if swap rates keep climbing and lenders keep following, it is no longer the far fetched scenario it seemed a few months ago. Borrowers weighing up a rate lock should be doing it now, not waiting for things to settle.

It has been a pretty poor start to the week for anyone looking for a mortgage because an unusually high number of lenders have announced they are putting up their rates due to pricing fluctuations and swap rate hikes.

Lots of the big and small lenders are pushing up their fixes, so if you do need a mortgage it is worth trying to secure a rate as soon as you can. When NatWest, HSBC, Nationwide and Halifax up their prices, the other lendders are generally not far behind.

It looks like two, three and five-year fixes will be noticeably more expensive given the number and scale of rate rises. Lenders are under much more pressure to fund their mortgages because borrowing costs have increased.

We currently have two-year fixes starting from around 4.55% for borrowers with a 40% deposit, but over the coming days the best-buy deals could move closer to 4.75% or slightly higher if we are lucky.

When three of the UK’s biggest lenders raise rates together, borrowers should take notice. It shows this is not an isolated adjustment—the mortgage market is responding to wider funding pressures, and the short term direction of travel is clearly upwards.

A return to 6% across the whole market is not inevitable, but it is becoming increasingly plausible for higher -LTV borrowers and some shorter-term deals if funding costs remain elevated. Borrowers should not panic, but they should act early: securing a deal now can provide a safety net, while still allowing their broker to review it if a better option becomes available before completion.

Nationwide increasing such a broad range of fixed rates by up to 0.30% is another clear sign that the mortgage market has moved into an upward repricing phase. With several major lenders now making increases in quick succession, borrowers are seeing competitive deals disappear and be replaced at higher rates.

It is too early to say 6% will become the norm, but while wholesale funding costs remain elevated the immediate direction of travel is clearly upwards. The speed of these changes is a reminder that mortgage pricing can move significantly even without a Bank of England rate decision.