Nationwide will increase selected fixed and tracker rates by up to 0.20%, effective 10 September.

This includes rates across its first-time buyer, home mover, existing customers moving home and remortgage products.

It will also impact switcher and additional borrowing ranges.

The lender’s cheapest two-year fix is going up from 4.48% to 4.63%, while its five-year fix is also rising from 4.5% to 4.59%.

Commenting on the increases, Trinity Financial product and communications director Aaron Strutt says: “Nationwide’s cheapest two-year fix is going up from 4.48% to 4.63% which is frustrating because it was one of the standout best buy rates and popular with borrowers looking for competitively priced shorter term deals.”

“Nationwide’s five-year fix is also rising from 4.5% to 4.59% so it is not going up by quite so much as many of its other fixed rates.”

“Nationwide last changed its mortgage rate pricing on the 18th August which is quite a long time in the current economic climate. Many of the other lenders change their rates much more frequently so Nationwide is one of the last big providers to hike its rates following the funding cost increases.”

Strutt notes: “Halifax has the most competitively priced two-year fix from 4.40% with a £999 fee, but it is only available to those earning over £100,000 and willing to open a Lloyds Premier current account.”

“The two-year fixed rate is 4.60% for anyone buying a home through Halifax and earning less than £100,000. Santander’s two-year fix is also still pretty reasonable at 4.52% and it has a £1,499 fee.”

Nationwide follows a string of lender increases over the last week. Yesterday Halifax Intermediaries, BM Solutions, Accord Mortgages and InterBay all announced rate changes.