Nationwide will raise selected fixed-rate residential prices by up to 30 basis points from tomorrow (2 February).
The mutual says it will lift fixes among its new business, additional borrowing and existing customers moving home ranges. There is no change among switcher rates.
Its move comes hours after the Bank of England’s rate-setting Monetary Policy Committee left the base rate on hold for the fourth meeting in a row at a 16-year high of 5.25% at noon — but gave little indication of when it might begin to fall.
The central bank is battling inflation, currently at 4%, in a bid to bring it down to its 2% target.
The MPC said in the minutes from its meeting: “The committee has judged since last autumn that monetary policy needs to be restrictive for an extended period of time until the risk of inflation becoming embedded above the 2% target dissipates.”
It also comes after swap rates have risen in recent weeks.
Two-year Sonia swap rates were 2.771% yesterday, from 2.678% at the start of the year, according to Chatham Financial. Five-year rates have risen to 2.469% from 2.332% over the same period.
Nationwide reminds brokers they can reserve a product without submitting a full mortgage application – but this must be done by 8pm today (1 February).
John Charcol head of marketing Nicholas Mendes says: “Nationwide is the latest high-street lender to reverse its recent trend in downward repricing.
“While markets had been pricing in a bank rate reduction at the start of the year, unfortunately in recent weeks that continued to look unlikely, feeding into an increase in swaps.
“As a result, lenders have been delaying any rate increases for as long as possible or at least until they have used their allocation of funds.”
