The interest rate changes for two, three, five and 10 years of fixed-rate products effective tomorrow (September 5) have been announced nationwide.
For new and existing customers who move, loan-to-value (LTV) two, three, five and 10 years fixed rates will increase by 0.03% to 0.20%.
Now, the price of a two-year product will start at 3.87%, the price of a three-year product is 3.99%, the price of a five-year product is 3.99%, and the price of a 10-year product is 4.45%.
Additionally, at two, three, five and 10 year fixed rates, first-time buyer products are priced at up to 95% LTV, which will rise 0.0% to 0.17%.
The cheapest rate for a two-year transaction would be 4.03%, 4.14% for a three-year transaction, 4.22% for a five-year transaction and a 10-year transaction price of 4.22%.
On loan debit products, up to 90% of LTV two- and five-year fixed will rise by 0.04% and 0.07%, with interest rates for two-year transactions at 3.94% and price for five-year transactions at 3.99%.
Within the same range, two, three, five and 10 years fixed will also increase by 0.05% to 0.10%.
The starting price for a two-year deal will be 3.89%, for a five-year product, 3.94%, for a three-year deal, 3.99%, and for a 10-year deal, 4.49%
“We are constantly reviewing our mortgage rates and with the recent development of swap rates, we have to make changes to reflect the current environment,” a national spokesperson said.
“We continue to support existing customers with our pricing commitments and maintain a good position in the market to support all borrowers, including first-time home buyers.”
Aaron Strutt, director of financial products and communications at Trinity, also commented on the changes: “We have been expecting some lenders to push their prices higher, especially with recent increase in swap rates and increased market uncertainty.”
“The nationwide fixed interest rate is the cheapest, with two-year fixed interest rate rising from 3.74% to 3.87%. Not just a huge increase, it’s enough to increase monthly repayments.”
