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Major UK Lenders Lift Fixed Mortgage Rates, Halting January Price War

Rising swap costs are pushing lenders to reprice.

Overview

  • Nationwide increased selected fixed deals by up to 0.19 percentage points, Virgin Money by about 0.14–0.15 points, and Santander by up to 0.07 points.
  • The moves follow a January stretch of aggressive cuts that saw leading fixed rates slide from roughly 4% to around 3.5% on some deals.
  • Brokers say higher SONIA-linked swap rates and stickier inflation have raised funding costs, prompting lenders to pull and reissue products.
  • Barclays and NatWest have also raised some fixed rates, reinforcing signs that the recent bout of heavy discounting has cooled.
  • Advisers urge borrowers with renewals or purchases approaching to compare options now and consider locking a rate up to six months in advance.