Major Lenders Increase Mortgage Rates for Second Time in a Week
Nationwide Building Society and Virgin Money have confirmed they will raise mortgage rates from Friday, March 13, 2026, marking the second round of increases in just seven days for both financial institutions. This move comes as swap rates climb toward levels seen a year ago, largely driven by ongoing conflict in the Middle East, creating significant turmoil in the mortgage market.
Specific Rate Increases Announced
Nationwide will implement increases of up to 0.2% across its entire mortgage portfolio, following a previous adjustment of up to 0.25% just last week. Similarly, Virgin Money will raise rates by up to 0.21% across all products, also building on a 0.25% increase from the prior week. Experts estimate these changes will add approximately £360 per year to a standard £150,000 mortgage, placing additional financial pressure on borrowers.
Broader Market Context and Expert Analysis
These announcements follow similar actions by other major banks, including NatWest and Barclays, which recently increased rates by up to 0.25% and 0.3% respectively. Emma Jones, Managing Director at Whenthebanksaysno.co.uk, commented, "Rates are now going up at breakneck pace and borrowers should be very conscious of this fact. Lenders large and small are upping rates across the board, often quite noticeably. Events in the Middle East are creating turmoil in the mortgage market."
Babek Ismayil, CEO of homebuying platform OneDome, noted the rapid transformation of the mortgage landscape, stating, "This has not been a great week for borrowers at all. Markets are highly volatile and are pricing in increased inflation, which is sending swap rates north and mortgage rates with them. In under a fortnight, the entire mortgage landscape has changed."
Impact on Borrowers and Future Outlook
The consecutive rate hikes by multiple lenders signal a challenging period for homeowners and prospective buyers, with costs rising swiftly due to geopolitical tensions affecting global financial markets. Borrowers are advised to stay informed and consider their options carefully as the situation continues to evolve, with further adjustments possible depending on economic and political developments.
