Three major lenders have announced they will raise rates on new fixed deal mortgages today in what is another setback for the housing market.

Nationwide, Santander and NatWest will push up the cost of new deals as uncertainty remains over lending costs. They follow various rivals who lifted their rates last week.

Expectations of the extent and speed of interest rate cuts by the Bank of England have been scaled back, prompting the changes, according to the BBC.

Nationwide - the UK's biggest building society - will increase rates on deals by up to 0.25 percentage points.

The average rate on a two-year fixed deal is now 5.87%, according to the financial information service Moneyfacts. That is still about a percentage point lower than last year's peak.

Mortgage brokers say the moves of recent days are not another cycle of rapidly rising mortgage rates, the likes of which were seen in the last two years.

However, some borrowers had banked on rates going down, so this could influence the decisions about whether and when to move home.

The Bank of England makes its next decision on benchmark interest rates on 9 May.

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