Nationwide Increase Rates up to 0.35% as Middle East Conflict Pushes Rates Higher

The useful thing here is what it proves. The same lenders who were cutting in a "rate war" days ago are putting rates up this week, and the base rate has not moved. This is swap markets reacting to a conflict, not the Bank of England, and nobody can forecast the next flare-up in the Middle East.

So if you were waiting to time the bottom, this is your answer: you cannot. The number you are trying to catch moves on missiles, not on your mortgage plan.

The calm read is the same as last week. Do not build your decision around a rate that swings 0.35% on geopolitics. Borrow within what you can comfortably afford, take the best deal in front of you now, and refinance when the cycle turns. A fix is a decision you can revisit later. The price you pay for the house is not.

Nationwide's move is a reminder that mortgage pricing can change far more quickly than most borrowers realise. Global events don't just affect oil prices or financial markets - they can feed through into mortgage rates within days.

The important thing is not to panic, but equally not to assume today's mortgage deal will still be available tomorrow. If you've found a mortgage that's right for your circumstances, there's likely little to gain from delaying in the hope of rates reducing while funding costs remain elevated. Many lenders will also allow borrowers to switch to a cheaper product before completion if rates improve, so securing a rate today doesn't always mean missing out tomorrow.

The Middle East melee continues and borrowers are being financially impacted again just as things started to settle. A swathe of hikes can be expected as markets react to the volatility and new instability again.

This is a brutal blow for borrowers. When Britain’s biggest building society starts hiking fixed and tracker rates by up to 0.35%, it sends a chill through the whole mortgage market. The cause may be thousands of miles away, but the pain lands straight on UK kitchen tables. Fresh conflict in the Middle East has rattled markets, pushed up swap rates and forced lenders to reprice fast. For anyone buying, remortgaging or already stretched, this is the last thing they needed. It is a grim reminder that one geopolitical shock can wipe out weeks of cautious optimism in a single morning. Borrowers should move quickly: in this market, a rate on screen today can be gone by tomorrow.