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Nationwide and Virgin Money raise mortgage rates as brokers warn "the mortgage rollercoaster isn't quite ready to stop"

ended 29. September 2026

NATIONWIDE and Virgin Money are the latest lenders to raise mortgage rates as brokers warn "the mortgage rollercoaster isn't quite ready to stop".

Nationwide will increase selected fixed and tracker rates by up to 0.21%, while Virgin Money will raise some of its fixed rates by as much as 0.20%.

The changes follow Barclays’ decision yesterday to increase its market-leading 4.75% two-year fixed mortgage to 5.05% and its 4.93% five-year fix to 5.03%.

Brokers speaking to Newspage warned that sub-5% mortgages were becoming increasingly scarce and said further increases could follow while swap rates and lenders’ funding costs remained elevated.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said there are few sub-5% mortgages remaining.

He added: "I don't think this surprises anyone at the moment. Virgin Money and Nationwide themselves are increasing rates as swap rates and the economic climate show no sign of improvement in the short, or long, term.

"With very few fixed rates sub-5% now available, this has a huge knock-on effect for buyers and those looking to remortgage.

"The government can create all the small deposit schemes it likes, but if rates are high, buyers will shy away, and the market stalls."

James Blackler, Managing Director at Oakstead Finance, said the reason Nationwide and Virgin have repriced is that "swap rates dictate mortgage pricing, and they're moving the wrong way for borrowers".

He added: "But borrowers aren't powerless here. Every client we work with gets their remortgage lined up around six months before their existing deal ends, precisely so a move like this doesn't catch them out.

"Those without that buffer are the ones ringing us in a panic a fortnight before their fixed rate expires, with pricing shifted underneath them.

“This latest 0.21% rise across remortgage and switcher ranges won't be the last of the year. Preparation beats panic every time, and the borrowers who protect themselves early are consistently the ones who come out ahead.”

Adam Stiles, Managing Director at London-based Helix Financial Partners, said swap rates were driving the increases.

He added: "Continued rate rises are currently the norm. No lender wants to be top of the list as this hugely impacts their service levels.

"So we can expect the mortgage merry-go-round of rate rises until swaps, which dictate the pricing of fixed rates, calm down and reduce in volatility."

Tracey Dixon, Buy-to-Let Mortgage Specialist & Owner at Cardiff-based Pure Mortgage and Protection, said we should expect more mortgage rate rises.

She added: "I wouldn’t assume this week’s increases are the last. Lenders are repricing as their funding costs rise, but rates can change quickly in either direction.

"Anyone nearing the end of a fixed deal should review their options early rather than wait for certainty."

Elliott Benson, Owner at Leeds-based Sett Mortgages, said mortgage rates change quickly.

He added: "It is going to be disappointing for many buyers and movers to see this as more lenders jump on the rate increase bandwagon with not much notice at all. They've been sporadically increasing over the last week and it doesn't seem to be slowing down.

“However, as we have seen before, things can change overnight and then we may be looking at another race to the bottom as we have seen so many times before over the past year.”

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said it was a "rollercoaster" in the market.

He added: "For borrowers hoping for some relief, news that Nationwide and Virgin Money have increased rates will feel like another kick when they're already down.

"Every time the market seems to be settling down, something comes along to remind homeowners that the mortgage rollercoaster isn't quite ready to stop."

Michelle Lawson, Director at Fareham-based Lawson Financial, said "the borrower onslaught is relentless with this latest round of rate increases".

She added: "People's pockets are only extendable to a point and this isn't healthy. The middle are now being squeezed every single day with many questioning the point.

"The UK economy is a disaster that nobody seems to be able to get a grip of. This must be addressed sooner rather than later as people can only do so much and the state's pot is empty."

9 responses from the Newspage community

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Justin MoyVerified
Managing Director at EHF Mortgages
I don't think this surprises anyone at the moment. Virgin (now part of Nationwide) and Nationwide themselves are increasing rates as Swaps, and the economic climate shows no sign of improvement in the short (or long) term. With very few fixed rates sub-5% now available, this has a huge knock-on for buyers and those looking to remortgage. The government can create all the small deposit schemes it likes, but if rates are high, buyers will shy away, and the market stalls.
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Adam StilesVerified
Managing Director at Helix Financial Partners
Continued rate rises are currently the norm. No lender wants to be top of the list as this hugely impacts their service levels, so we can expect the mortgage merri-go-round of rate rises until SWAPs, which dictate the pricing of fixed rates, calm down and reduce in volatility.
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Tracey DixonVerified
Buy-to-Let Mortgage Specialist & Owner at Pure Mortgage and Protection
I wouldn’t assume this week’s increases are the last. Lenders are repricing as their funding costs rise, but rates can change quickly in either direction. Anyone nearing the end of a fixed deal should review their options early rather than wait for certainty.
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David StirlingVerified
Independent Financial Adviser at Mint Wealth
For borrowers hoping for some relief, news that Nationwide and Virgin have increased rates will feel like another kick when they're already down. Every time the market seems to be settling down, something comes along to remind homeowners that the mortgage rollercoaster isn't quite ready to stop.
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Michelle LawsonVerified
Director at Lawson Financial
The borrower onslaught is relentless with this latest round of rate increases. People's pockets are only extendable to a point and this isn't healthy. The middle are just being squeezed every single day with many questioning the point. The UK economy is a disaster that nobody seems to be able to get a grip of- this must be done sooner or later as people can only do so much and the State's pot is empty to further assist.
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Aaron StruttVerified
Product and Communications Director at Trinity Financial
We are having yet another waive of fixed rate rises with Nationwide, Virgin Money and TSB pushing up the price of their mortgages so far today.
Nationwide has actually waited nearly two weeks to increase its fixed and trackers since its last price hike and during this time some lenders have raised their fixes multiple times.
Unfortunately Nationwide will only have one fixed rate available to new customers below 5% after these new rates go live, which is a two-year fix at 4.99% with a £1,499 fee for those with a 40% deposit. We are getting to the stage where there are not many sub-5% fixed rate mortgages left but there are still some decent tracker deals to choose from.
It would not be a surprise if more banks and building societies raise their rates over the coming days and at the moment price cuts look a long way off.
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Nouran MoustafaVerified
Practice Principal & IFA at Roxton Wealth
I would not assume this week marks the top.

Nationwide and Virgin pushing rates again tells you lenders are still reacting to a higher cost of money, not simply tweaking margins. Swap rates and funding costs have moved sharply, and lenders cannot keep absorbing that forever.

The uncomfortable reality is that mortgage pricing can deteriorate faster than Bank Rate itself moves. Borrowers waiting for the next base-rate decision may therefore already be behind the market.

Could rates stabilise? Absolutely. But right now there is too much inflation, energy and bond-market volatility to confidently call a ceiling.

My advice to anyone within six months of remortgaging is simple: get the options on the table early. You can reconsider if pricing improves, but you cannot retrospectively secure yesterday’s rate.

Hope is not a mortgage strategy.
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Elliott BensonVerified
Owner at Sett Mortgages
It is going to be disappointing for many buyers and movers to see this as more lenders jump on the rate increase bandwagon with not much notice at all.

They've been sporadically increasing over the last week and it doesn't seem to be slowing down

However as we have seen before, things can change overnight and then we may be looking at another race to the bottom as we have seen so many times before over the past year
Copy

Plus
James BlacklerVerified
Managing Director at Oakstead Finance
Swap rates dictate mortgage pricing, and they're moving the wrong way for borrowers - that's exactly why Nationwide and Virgin have repriced again. But borrowers aren't powerless here. Every client we work with gets their remortgage lined up around six months before their existing deal ends, precisely so a move like this doesn't catch them out. Those without that buffer are the ones ringing us in a panic a fortnight before their fixed rate expires, with pricing shifted underneath them. This latest 0.21% rise across remortgage and switcher ranges won't be the last of the year. Preparation beats panic every time, and the borrowers who protect themselves early are consistently the ones who come out ahead.