According to brokers, Nationwide now only has one fixed-rate deal available to new clients at a rate of less than 5%. This is the 4.99% fix for two years which comes with a fee of £1,499 and is intended for borrowers with a 40% deposit.
The building society has had a longer history with higher mortgage rates than its competitors. Aaron Strout, director of product and communications at Trinity Financial, notes that it has waited two weeks to increase the number of trackers and trackers since the last price hike. Meanwhile, some other lenders have raised the reforms several times.
Virgin and TSB also raised prices in the wake of Barclays’ rate hikes Prices rose and they pulled some of their best deals Earlier in the week.
The outlook does not look good for mortgage borrowers hoping to put an end to interest rate increases.
“We’ve gotten to the point where there aren’t a lot of sub-5% fixed rate mortgages left, but there are still some decent tracker deals to choose from,” Strout said.
“It would not be a surprise if more banks and building societies raise interest rates over the coming days, and at the moment rate cuts look a long way off.”
Advice for mortgage borrowers whose deals have ended
As always, the advice to borrowers is not to wait if your deal is due to expire within the next six months. With further price rise expectations and the Bank of England interest rate With expectations of a rise as well, it seems likely that mortgage rates will rise further.
In fact, James Blackler, managing director at Oxted Finance, explained that swap rates, which dictate mortgage pricing, were “moving in the wrong direction for borrowers”.
“But borrowers are not helpless here,” he told Newspage. “Every client we work with gets their mortgage remortgaged about six months before their current deal expires, precisely so they are not put off by a move like this.”
“Those who don’t have this reserve are the ones who panic us two weeks before the fixed rate expires, with rates shifting beneath them.
“This recent 0.21% rise in remortgage and converter ranges won’t be the last of the year. Preparation trumps panic every time, and borrowers who protect themselves early always come out ahead.”
