Mortgage rates in the UK rise for the first time in red Nationwide

• Nationwide reported that mortgage rates for the first time in months rose overall, with the average rate on its standard two-year fixed deals increasing by 2.2%.
• However, the rise is not without uncertainty across the UK, with energy bills and other costs putting pressure on households.
• Elsewhere, mortgage rates continued to rise across all regions, with the biggest increase of 8.6% in the North West and the smallest of 1.6% in London.

Mortgage rates in the UK rose for the first time in red Nationwide. Nationwide said that the average rate on fixed-rate deals stood at 27,484 in red, compared with 28,024.

That is, the average mortgage rate for fixed deals rose by 0.6% in red. Economic uncertainty drove a rise of 0.1%.

Overall, Nationwide said that mortgage rates climbed: an increase of 2.2% for fixed deals compared with 1.7% for variable deals. Robert Gardner, chief economist at Nationwide, said that the rise was driven by uncertainty in the run-up to the conflict, which has pushed up energy costs.

It is also expected to have an impact on mortgage rates: according to Moneyfacts, the average two-year fixed rate stood at 5.53%, compared with 4.83% at the start of the month. The average five-year fixed rate increased to 5.53% from 4.95% at the start of the month.

Agents are urging caution about the situation. Head of sales at London estate agent Antony Roberts Emily Reynolds said that the latest period of uncertainty, which they hope will end soon, is not having a negative impact on prices.

For Nationwide, mortgage rates rose further across all regions. The highest figure was in the North West at 8.6% year on year, while Scotland was lower at 3.5%. London saw a rise of 1.6%.

Tags: Economy/Europe