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Nationwide mortgage rates increase

Tuesday 17th June 2008

Nationwide Building Society has confirmed that it has increased borrowing rates on its fixed range mortgages and some tracker deals.

The company notes that increases in money market rates have led to the changes being made.

Effective as of today - June 17th 2008 - the rate increases cover a number of different products on offer from the lender.

Divisional director for mortgages at Nationwide Matthew Carter said the organisation always strives to offers its customers the best possible deals.

"However, we have seen continued large rises in money market rates together with further competitor activity and as a result it has been necessary to increase the rates on our range of mortgages," said Mr Carter.

He added that due to the current volatility in the sector, there are likely to be a number of frequent changes to fixed rate mortgages.

Some of the products on offer from Nationwide have seen rates rise by 0.5 percentage points, although others had increased by less than this level.

Fixed rate mortgage deals have now reached a ten-year high, new research has shown. A report from Moneyfacts found that the average two-year fixed rate deal stands at 6.75 per cent.

Following Nationwides announcement yesterday, other lenders have also confirmed increases in the cost of borrowing on a mortgage.

The Woolwich - the mortgage arm of Barclays - has withdrawn all its two-year fixed home loans and has increased fees on other products. Money market changes have been cited by this lender as the reasons for the changes in product offering.
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