Santander has become the first major lender to announce an increase in mortgage rates after a surprise rise in inflation last week.
A selection of the bank’s standard residential fixed rates will increase by up to 0.20 percentage points for purchase and remortgage clients from Wednesday.
The changes were announced as the UK’s biggest building society, Nationwide, said it was cutting its prices, bringing it closer in line with competitors.
The other five “big six” lenders, including Santander, reduced their prices in the first weeks of 2024, following data in December which showed that inflation was falling faster than expected.
But global uncertainties have prompted some experts to suggest that higher interest rates may be around for a while yet.
Last week, the consumer prices index (CPI) measure of inflation increased for the first time since February 2023 – from 3.9 to 4 per cent. Experts give their opinions:
Link to Original Article: The Independent - Santander becomes first major lender to increase mortgage rates after inflation rise and Nationwide is the first to drop rates