Mortgage Market in Turmoil as Lenders Hike Rates Amid Swap Rate Pressures

The past week has been marked by significant developments in the mortgage market, driven by rate uncertainty and high-profile boardroom appointments.

Nationwide welcomed Richard Walker as its new head of intermediary sales and new build, reporting directly to Damian Thompson. With extensive experience from Virgin Money and RBS, Walker aims to champion broker relationships and steer new-build activity. He takes over from James Briffitt, who retired after two decades of dedicated service.

The Bank of England's decision to keep borrowing costs at 3.75% has sparked a spirited debate across the mortgage market. A divided Monetary Policy Committee voted six to three for the hold, attempting to tame inflation without destabilising the wider economy. While some industry experts applaud the cautious breather, others argue a hike is already overdue.

Lenders have been quick to react, with NatWest, TSB, Skipton, Coventry, and Principality rolling out fresh rate hikes. Price tags rose by up to 43 basis points across the board, spanning residential and buy-to-let deals. Experts note that institutions are sprinting ahead of the Bank of England, reacting directly to climbing wholesale funding pressures.