Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Week in Review: Base Rate Hold and Mounting Rate Rises
Mortgage Strategy has rounded up its top 10 stories for the week of 14 to 18 September, with rate uncertainty and high-profile boardroom appointments driving the agenda. Key developments include the Bank of England's decision to hold the base rate, a wave of lender rate rises and a new appointment at Nationwide.
Bank of England Holds Base Rate at 3.75%
The Bank of England's Monetary Policy Committee voted six to three to keep borrowing costs frozen at 3.75%. The report notes the decision has divided the mortgage market: some commentators welcome the cautious approach while others argue a hike is overdue.
Lenders Roll Out Fresh Rate Rises
Several major lenders raised rates during the week. NatWest, TSB, Skipton, Coventry and Principality all announced increases of up to 43 basis points across residential and buy-to-let deals. The report attributes the rises to climbing wholesale funding pressures, with swap rates rather than the Bank of England said to be steering pricing.
Barclays also repriced, lifting rates by a uniform 20 basis points across 39 residential purchase products, pushing some deals past the 5% mark. Its two-year 60% LTV fix moved up to 4.75%.
Separately, heavyweight lenders including Santander, HSBC and Lloyds made a second major round of rate hikes this September, as rising swap rates piled on pressure and sub-5% deals became scarcer.
Nationwide also increased selected fixed and tracker rates by up to 0.20%, affecting first-time buyers, home movers, remortgages and switchers, with its two-year fix nudged to 4.63%.
Broker Support Moves at Nationwide and NatWest
Nationwide has appointed industry veteran Richard Walker as its new head of intermediary sales and new build, reporting to Damian Thompson. Walker brings experience from Virgin Money and RBS and replaces James Briffitt, who retires after two decades of service.
Meanwhile, NatWest launched a dedicated phone line for new-build cases, connecting brokers directly to business development managers for criteria checks, underwriting advice and pre-submission support.
What This Means for Letting Agents and Inventory Clerks
With buy-to-let products among those affected by the latest increases, letting agents may see continued movement in mortgage pricing that could influence landlord activity and investment decisions in the rental market.
Source: Mortgage Strategy