Nationwide Building Society today hiked mortgage rates above four per cent weeks after making cuts to its home loan costs.
Rates on fixed-term mortgage deals started to increase again this week as experts warned offers below four per cent would start to disappear.
Rates have been dropping since October when five-year deals were at their highest for 14 years, sitting at 6.51 per cent.
Nationwide announced it was raising mortgage costs because of an increase in swap rates.
UK homeowners may want to act fast as rates begin to rapidly increase.
PA
Swap rates control the pricing of fixed-rate mortgages and have been falling since the mini-budget in September.
As a result, many lenders have started pulling their deals and increasing rates.
Nationwide has increased its five-year fixed rate remortgage deal with a 40 per cent deposit by 0.20 percentage points.
On February 15 it was priced at 3,99 per cent but has now jumped to 4.19 per cent and a £999 fee.
Many lenders have started pulling their deals and increasing rates.
PA
The deal without a fee has jumper 0.21 percentage points from 4.18 per cent to 4.39 per cent.
Nationwide’s first-time buyer five-year fixed rate with a 40 per cent deposit and a £999 fee increased by 0.10 percentage points, making it 4.24 per cent.
Its home mover mortgage increased the same amount.
Nationwide director of home, Henry Jordan, said: “Over the last few months, we have continued to lower rates across our mortgage range, including doing so four times this year.
“However, given the recent increase in swap rates, we are having to make some small increases on selected mortgage rates this week so that we can continue to balance our support for all types of borrowers with the need to ensure our rates remain sustainable.”
HSBC and the Co-op also raised their rates this week.
HSBC increased the rate on its five-year remortgage by 0.05 per cent meaning it now sits at 3.99 per cent.
Platform, which is an intermediary mortgage lender of the Co-operative Bank, removed all of its mortgage deals last week after being overwhelmed by demand.
