More sub-4% mortgages off the market as lenders raise rates

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Several lenders have made further mortgage rate increases as the market adjusts to rising swap rates caused by the US-Iran conflict.

No more sub-4% fixed rates at Nationwide 

From 17 March, Nationwide will increase selected rates by up to 0.35%, applying to its first-time buyer, homemover, existing homemovers, remortgage, switcher and additional borrowing products. 

The changes will see the removal of its sub-4% fixed rate mortgage offering. 

For example, its new homemover two-year fixed product at 60% loan to value (LTV) with no fee is going up from 4.14% to 4.49%, and with a £999 fee, the rate is increasing from 3.9% to 4.25%. The equivalent product with a £1,499 fee will rise from 3.85% to 4.2%. 

 

Increases of 35bps across NatWest deals 

NatWest will increase mortgage rates by up to 0.35% from 17 March, impacting purchase, remortgage, first-time buyer, shared equity, green, buy-to-let (BTL) and additional borrowing products. 


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This has also resulted in the removal of mortgage rates below 4%, such as the two-year fixed purchase product at 60% LTV with a £1,495 fee, which has gone up from 3.97% to 4.32%. 

The corresponding product with a £995 fee has gone up from 4.02% to 4.37%, and the fee-free option has increased from 4.24% to 4.59%. 

Its two-year fixed remortgages have seen similar increases. 

Across its higher-LTV options, the fee-free two-year fix at 90% LTV has gone up from 4.68% to 4.98%, while the product with a £995 fee has gone up from 4.43% to 4.75%. 

At 95% LTV, the fee-free two-year fix has gone up from 5.07% to 5.35%. 

 

Higher rates at Santander 

Santander has also increased rates by as much as 0.35% from 17 March, impacting its new business first-time buyer, homemover, large loan, remortgage and BTL deals. 

This will include increases of up to 0.35% to all residential deals, and the rate of Santander’s My First Mortgage will go up by 0.2%. 

BTL purchase and remortgage fixed rates will rise by up to 0.35%. 

All residential tracker rates will go up by 0.35%, while residential and BTL product transfers will rise by as much as 0.3%, and residential and BTL tracker rates by as much as 0.15%. 

 

Co-op increases mortgage pricing 

The Co-operative Bank announced it would withdraw selected mortgages on 17 March, to relaunch with rate increases of up to 0.3% on 18 March. 

Changes will apply to all purchase and remortgage rates, on two-, three- and five-year fixed rates for new residential business, and all remortgage rates. 

The Co-op Bank will raise rates across its professional mortgages, Help to Buy Wales, and existing borrower deals including residential, BTL and Help to Buy products. 





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