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Nationwide increases rates by up to 0.3%

Journalist: Justin Moy, Contributing Editor

ended 01. February 2024

Nationwide, late to the rate reductions in January, have reacted much quicker in February with an increase of up to 0.3% on fixed rates across their range. In particular, 2yr and 5yr Fixed deals are affected, for purchases and some remortgage options, whilst Product Transfer deals are unaffected this time. Newspage asked brokers for their opinions and thoughts on the announced changes, which are due to go live on the 2nd of February.

 

 

7 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
Given Nationwide was late to the table of rate cuts in January, it's surprising to see them react so quickly in February, but this does show that the cost of funds is increasing and lenders are having to readjust their rates with little notice. Nationwide does allow brokers to reserve deals in advance, which is an important benefit, especially in a market where rates are increasing. No change for existing clients looking for a new deal, but those looking to refinance or purchase will be affected.
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Elliott Culley
Director at Switch Mortgage Finance
With lender margins so tight right now, it's not surprising to see some lenders dip in and out of being the most competitive. Whereas some lenders have changed rates on either purchase or remortgages, Nationwide have increased across the board, which implies they got extremely busy very quickly.
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Rohit Kohli
Director at The Mortgage Stop
Nationwide were the last of the major lender to reduce their rates so its dissapointing to see them raise their rates so quickly. From what we have seen so far it's probably due to an influx of applications given how competitive they have been. However, these changes are going to worrry thousands of borrowers who were thinking of switching.
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Darryl Dhoffer
Founder at The Mortgage Geezer
So in barely eight days, Nationwide are now repricing and increasing select interest rates across their range. In all fairness they have been leading the field on some rates for this 8-day period, when for the previous 6 weeks they were not even on the same playing field as some other lenders. So with a mammoth three hours' notice, working to Nationwide's 5pm finish, we have plenty of time to notify borrowers of these changes, and work well into the night updating/placing cases.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
Although expected, this is sad news. Nationwide were market leading for a short time and probably inundated with applications so can afford to reprice. However, they allow you to reserve rates, so even though the products will be gone, there is still a window to take advantage of them.
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Gary Bush
Financial Adviser at MortgageShop.com
Sadly, Nationwide appears to have been hit with a deluge of new applications that has forced them to increase their fixed rates again. With the Bank of England holding the base rate, this mortgage rate price war is far from over and we expect more lender rate decreases shortly.
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Akhil Mair
Director at Our Mortgage Broker
As mortgage brokers, we acknowledge Nationwide's swift response with rate increases in February, especially on fixed rates. While these adjustments may seem challenging for some clients, it's crucial to understand the broader economic landscape driving these changes. We remain committed to helping our clients in navigating through these adjustments and finding the most suitable mortgage options tailored to their needs.