Nationwide has raised rates on its new business for two-, three-, five- and ten-year fixed deals and two-year tracker products by up to 45 basis points from today (26 May).
The country’s largest building society adds that for first-time buyers and those looking to move home, rates will increase by between 5bps and 40bps on products up to 95% loan to value.
Remortgage rates will rise by between 5bps and 40bps on products up to 90% LTV.
And for switcher, additional borrowing and existing customer moving home deals, rates will increase by between 5bps and 45bps, while shared equity prices will lift by up to 45bps.
The move comes as Virgin Money and other lenders raise rates following Wednesday’s less-than-expected fall of inflation to 8.7% in the year to April, from 10.1% in March.
This has caused investors to bet that interest rates, which rose by 25bps to 4.5% earlier this month, will rise further this year, with some estimates as high as 5.5% by the end of the year.
Swap rates, which influence mortgage pricing, have lifted over the last two days.