Experts warn rate hikes could add £360 a year to a £150,000 mortgage

Nationwide and Virgin Money have increased mortgage rates again, adding further pressure on borrowers as lenders across the UK respond to market instability.

The latest changes mean homeowners could face higher mortgage costs, with experts estimating that a 0.2 percentage-point increase could add roughly £360 a year to a £150,000 loan.

Nationwide confirmed it will raise mortgage rates by up to 0.2 per cent from Friday, 13 March. The increase follows another rate rise introduced by the lender only a week earlier, when rates were lifted by up to 0.25 per cent.

Virgin Money is also raising its mortgage rates across the board by up to 0.21 per cent from the same date.

Like Nationwide, the lender had already increased rates by up to 0.25 per cent just a week earlier.

The moves are part of a wider trend across the mortgage market, where lenders are rapidly adjusting borrowing costs in response to rising financial pressures.

Earlier on Thursday, NatWest announced mortgage increases of up to 0.25 per cent across its range of products.

Barclays has also raised rates, with increases of up to 0.3 per cent across its mortgage deals.

Experts say the series of rate increases reflects rising swap rates, which influence the cost at which banks lend money for mortgages.

Recent developments in global markets have pushed swap rates higher, creating significant uncertainty for lenders.

In particular, analysts have pointed to instability linked to the conflict in the Middle East as a key factor affecting financial markets.

The resulting volatility has caused mortgage pricing to shift rapidly.

Emma Jones, managing director of the brokerage Whenthebanksaysno.co.uk, said lenders across the industry are moving quickly to adjust their products.

“Rates are now going up at a breakneck pace, and borrowers should be very conscious of this fact,” she said.

“Lenders large and small are upping rates across the board, often quite noticeably.”

Jones added that global events are now directly affecting borrowing costs in the UK housing market.

“Events in the Middle East are creating turmoil in the mortgage market,” she said.

The rapid pace of changes means homeowners and prospective buyers are facing a highly uncertain environment when trying to secure new mortgage deals.

For those already on variable rates or nearing the end of fixed-rate deals, the impact could be particularly significant.

Rising mortgage costs come at a time when many households are already dealing with increased living expenses and financial pressures.

Industry experts say the current situation highlights how sensitive mortgage markets are to global economic developments.

Swap rates, which reflect expectations about future interest rates and financial stability, often respond quickly to geopolitical tensions.

When these rates rise, lenders typically pass on the increased costs through higher mortgage pricing.

As a result, borrowers may see further changes to mortgage deals if market conditions continue to shift.

For now, lenders are reacting quickly to the latest financial signals, leaving homeowners to navigate a rapidly changing borrowing landscape.