Thursday March 27, 03:11 PM
Nationwide ramps up mortgage rates
LONDON (ShareCast) - Nationwide is hiking the rate on its tracker mortgages by over half a percent from midnight tonight and withdrawing other products as it tries to better control its lending. As from tomorrow, the country's largest mortgage
lender will charge borrowers 7.1% for its two-year tracker, an increase of 0.57%.These tracker deals have been extremely popular as homeowners looked to take advantage of expected cuts in interest rates through this year. Those seeking to remortgage on a fixed rate deal will also have to find a little extra, with 0.2% added to the two and five year mortgages. The two-year fix jumped to 7.28% with no reservation fee and just 5% deposit, while the five-year goes up to 6.43%. Nationwide's two year fixed rate mortgage with a £1,499 fee and £1,999 fee, two year tracker mortgage with no fee and two year tracker mortgage with a £1,499 fee will be withdrawn. "The changes announced today follow significant increases in the cost of funding, and recent moves by a number of high street lenders who have either increased rates or withdrawn some products or both," said the building society. Matthew Carter, Nationwide's director of mortgages, said the focus was on prudent and responsible lending rather than volume.
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