2 Major UK lenders raise mortgage rates – with more to follow

Two major lenders have raised mortgage rates today in the wake of market chaos sparked by conflict in the Middle East.

HSBC and Nationwide are the first major mortgage providers to make the move, but will be followed by Coventry Building Society on Monday.

A rise in swap rates – the interest lenders charge each other for borrowing – has increased the costs passed on to consumers.

The Money team has spoken with HSBC and Nationwide to bring you the details.

Nationwide

Changes introduced by the building society today affect new two, three, five and ten-year fixed rate products.

“Like other lenders, we are having to increase rates following a significant rise in swap rates as a result of recent global events,” a spokesperson told us.

“However, our increases are more limited than the swap rates rise.”

First-time buyers (up to 95% LTV)

Fixed rates will increase across the board by between 0.14 and 0.25 percentage points.

The new starting rates are:

• Two years: 3.92%
• Three years: 4.09%
• Five years: 4.31%
• Ten years: 4.49%

Movers (up to 95% LTV)

Fixed rates will increase by between 0.07 and 0.25 percentage points.

The new starting rates are:

• Two years: 3.79%
• Three years: 3.89%
• Five years: 4%
• Ten years: 4.49%

Switchers (up to 90% LTV)

Fixed rates will increase by between 0.02 and 0.11 percentage points.

The new starting rates are:

• Two years: 3.72%
• Three years: 3.80%
• Five years: 3.89%
• Ten years: 4.47%

HSBC

HSBC did not provide its starting rates, but said residential rates for new customers have increased by between 0.10 and 0.25 percentage points.

Residential rates for existing customers have increased by between 0.04 and 0.13 percentage points.

Tracker rates have increased by 0.05 percentage points.

Buy-to-let rates for new customers have increased by 0.10 points.

Coventry Building Society did not immediately respond to a request for comment.