Swap-rate surge pushes Nationwide, HSBC and TSB to raise fixed mortgage rates by up to 0.23%

Two- and five-year swap rates climbed to 4.26% and 4.32% by 22 July, up from around 3.99% and 4.03% a month earlier, after the closure of the Strait of Hormuz pushed oil back to $100 a barrel and revived inflation fears (Chatham Financial). Because fixed mortgages are priced off swap rates rather than the base rate, lenders including Nationwide, HSBC, TSB, Accord and Virgin Money have repriced upward by roughly 0.10% to 0.23%, with several changes taking effect this week. For buyers that trims borrowing power at the margin, with first-time buyers on higher loan-to-values most exposed, and for sellers it strengthens the case to price realistically as budgets tighten ahead of Thursday's Bank of England decision. It is a nudge rather than a shock: fixed rates remain well below this year's peaks, and lenders have shown they bring pricing back down once funding costs settle.