Multiple major mortgage lenders are upping rates in a move that experts say could take “momentum out of the housing market”.
Nationwide and Virgin Money are increasing rates by up to 0.35 percentage points from Thursday while Barclays and Coventry Building Society are also upping their prices too.
The move comes after oil prices begun to climb earlier this week after the ceasefire between Iran and the US was breached.
For the past month, mortgage rates have been steadily dropping and the war in the Middle East – which began in February – appeared to be de-escalating.
The cheapest rates are now below 4.2 per cent for some borrowers.
But swap rates – which play a large part in determining fixed mortgage rates – have been rising this week, prompting lenders to act.
Experts have warned that higher rates could damage an already struggling housing market.
Between April and May, when rates were peaking, house prices dropped 0.6 per cent on average according to Nationwide, which was the first fall in 2026.
Liam Daly, an economist at the Centre for Economics and Business Research said: “After mortgage rates fell notably in June, there was growing optimism that a sustained period of relative stability in the Middle East would reduce the risk of interest rates hikes, and that falling mortgage rates would gradually restore some affordability and activity in the UK housing market.
“However, with the conflict now appearing to enter a new intensified phase, the momentum is again shifting in a negative direction. The hikes this week reduce affordability and homebuyer demand. Of course, the path of the conflict is highly unpredictable, but the response of the markets so far reflects growing fears about the economic fallout.”
Brokers had a similar message.
Lewis Shaw, a broker at Shaw Financial Services, said: “This will sap what little confidence was creeping back into the housing market. Buyers were only just dipping their toes in again so further rate rises are the last thing anyone needed.
“Add in the normal summer lull, the World Cup and political turmoil brewing in Westminster and you have a perfect storm. This could slam the door shut on the property market until autumn.”
Ian Futcher, a financial planner at Quilter, added: “Recent mortgage rate increases risk taking some momentum out of the housing market just as confidence had started to improve.
“Lowering mortgage rates and the signing of a ceasefire in the Middle East had given some prospective buyers hope that inflationary pressures were easing and that the outlook for interest rates was becoming more predictable.
“For some, that may have been the catalyst to start viewing properties again or revisit plans that had been put on hold. Ultimately, this slew of rate hikes may force more people into wait-and-see mode while sticking their housing plans on ice.”
Some experts told buyers that the situation was not as bad as it was earlier in spring.
Average two-year rates reached 5.89 per cent in April according to data firm Moneyfacts, and they are now under 5.5 per cent.
“Rates remain well below where they were during the spike earlier this year, and the market has shown throughout 2026 that when conditions settle, lenders are quick to pass falling costs back to borrowers,” said Nicholas Mendes of John Charcol brokers.
Hina Bhudia, partner at Knight Frank Finance, said that the rises might provoke “urgency” among some buyers.
“These increases are a reminder that mortgage pricing can change quickly. While rate rises may cool some buyer sentiment, they could also inject a sense of urgency into the market, prompting borrowers to lock in a rate now rather than risk further increases in the months ahead,” Bhudia said.
For those remortgaging or looking to buy in the coming weeks, experts advise that it is best to secure a rate sooner rather than later.
Mendes added: “Products can typically be reserved up to six months before completion, and if pricing improves in the meantime, most lenders will allow a switch to the cheaper deal.
“That means borrowers can lock in certainty now without giving up the benefit if the market moves their way, which in a fast-moving week like this one is the best of both worlds.”
Hence then, the article about nationwide and barclays hike mortgage rates in further damage to the housing market was published today ( ) and is available on inews ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Nationwide and Barclays hike mortgage rates in further damage to the housing market )
Also on site :
- 20 Years Later, This 2000s Emo Band Remains 'One of the Most Significant Rock Bands' Amid Sold-Out Tour
- Wide-Leg Capri Pants Are a Summer 2026 Wardrobe Staple, and You Can Snag a Pair for Just $10 at Amazon
- ‘Motor City’ Review: Potsy Ponciroli’s Audacious Thriller — a Scorsese Opera without Dialogue — Announces the Arrival of a Startling Voice