image sourced from original article at Nationwide Building Society is set to withdraw the last fixed rate mortgages below 4 per cent, increasing rates by up to 0.35 percentage points. Its lowest two-year fixed deal will rise from 3.9 per cent to 4.2 per cent, adding around £33 a month to repayments on a £200,000 loan over 25 years. Other major lenders are also raising rates, effectively bringing an end to sub-4 per cent fixed deals.
The rapid repricing follows similar moves earlier in the week and reflects rising funding costs for lenders. Inflation concerns linked to conflict in the Middle East and higher energy prices have shifted market expectations, with traders now anticipating interest rate increases rather than cuts. As a result, average two-year and five-year fixed mortgage rates have climbed sharply in recent days.
Brokers warn that borrowers who delay could face higher monthly repayments, urging homeowners and buyers to secure deals as soon as possible. While rates have risen, some comparatively competitive fixed options remain available for now, though lenders are expected to stay cautious if uncertainty continues.
