Virgin Money and Nationwide are increasing some of their mortgage rates.
They are the latest lenders to increase some of their rates, a trend that reflects the current swap rate environment.
Virgin Money has announced the rate increases, effective from 8pm today (12 November).
Virgin Money’s increases affect purchase, remortgage, buy-to-let (BTL) and product transfer rates.
For example, on select two- and five-year rates on new purchases, rates will increase by up to 0.15%, starting from 4.29%.
Meanwhile, an example of an increase on its BTL range includes two- and five-year rates with a £995 fee rising by 0.2%, starting from 4.54%.
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The majority of increases see the change in rates above 4%.
One exception is two- and five-year BTL rates with a 3% fee increasing up to 0.16%, starting from 3.67%.
Increasing mortgage rates
Nationwide is also increasing many of its rates for new customers who are moving, first-time buyers, and remortgagors.
The increases mean that most of its sub-4% rates will also go above 4%.
For example, its five-year fixed rate deal with a £999 fee will increase from 3.94% to 4.14%.
The increase is identical for those borrowers who are remortgaging on such a deal.
Nationwide is increasing the rates effective from tomorrow, 13 November.
In addition, the lender will be reducing rates on its new business two-year tracker products by 0.25% to reflect last week’s interest rate cut by the Bank of England.
It will also lower rates on all 10-year fixed rate products by up to 0.11% as well as selected higher loan-to-value (LTV) two-year fixed rate products by up to 0.15%.
A Nationwide spokesperson said: “Nationwide is not immune to the current swap rate environment and the changes we’re making on our fixed rate range are reflective of that and the rate changes happening across the market.
“Our tracker rates are seeing a reduction to reflect last week’s bank rate decision.
“We continue to support existing customers with our pricing pledge and remain competitive and well-positioned in the market to support all borrowers.”
