Nationwide is increasing residential rates by up to 0.19% for both new and existing borrowers, while Santander is increasing residential and buy-to-let fixed rates in its new business and product transfer ranges

Nationwide Building Society and Santander have both announced increases to mortgage rates this week.

From tomorrow, Nationwide is increasing residential rates by up to 0.19% for both new and existing borrowers.

The increases apply to Nationwide’s new member homemover and first-time buyer ranges across two, three and five-year fixed rates at all LTVs. Selected remortgage rates have also seen increases.

For new members, the lowest rate available is now a two-year fix at 60% or 75% LTV, available at 3.69% for new and existing members moving home.

Also taking effect from tomorrow, Santander is increasing residential and buy-to-let fixed rates in its new business and product transfer ranges.

In its residential home mover range, all 75%, 85% and 90% LTV two-year fixed rates increasing by up to 0.04% and all 60% and selected 75% LTV three and five-year fixed rates will rise by up to 0.07%.

First-time buyer rates are increasing by up to 6bps between 85-95% LTV and remortgage rates will rise by up to 4bps.

Buy-to-let purchase and remortgage rates will also see hikes of up to 4bps.

Hina Bhudia, partner, Knight Frank Finance, commented: Swap rates have risen in the past fortnight as stronger-than-expected economic data has prompted investors to reassess their outlook for UK borrowing costs. If the economy remains this resilient, the Bank of England may only cut rates once more this year.

She added: That’s exerting upwards pressure on mortgage rates and several of the larger lenders, including Nationwide, NatWest and Santander have announced increases in the past week. These are fairly small increases at the moment, but they threaten to sap momentum from the recovery in activity that was strong through January.