Nationwide Building Society is citing sharp increases in money market rates as the reason behind its decision to raise rates on many of its tracker and fixed-rate mortgage deals. The UK's largest building society will introduce the new rates on June 17.
Nationwide's two-year fixed-rate mortgage deals
with a £599 fee will be available at 6.55 per cent on a 75 per cent loan-to-value (LTV) loan compared with the previous 6.25 per cent. The 90 per cent LTV rate will become 6.95 per cent compared with 6.45 per cent and the 95 per cent LTV will be 7.25 per cent compared with 6.95 per cent.
Two-year fixed-rate deals with no fee will be available from 6.95 per cent (75 per cent LTV) compared with the previously available 6.65 per cent.
While Nationwide's three-year fixes will now be available from 6.35 per cent (75 per cent LTV) compared with 6.05 per cent – a £299 fee applies for first-time buyers and £599 for others – while five year fixes will start at 6.35 per cent (75 per cent LTV), up from 6.10 per cent, with a £599 fee.
Finally, 10-year fixed-rate mortgages will be priced at 6.39 per cent (75 per cent LTV) with a £599 fee, compared with 6.14 per cent. And Nationwide's 25-year fix will also rise from 6.28 per cent to 6.53 per cent with a £599 fee.
Those looking for a Nationwide tracker mortgage
will find its 90 per cent LTV loans are the ones to have risen. Two-year trackers with a £599 fee will rise to 6.55 per cent from 6.35 per cent, while three-year rates will rise to 6.14 per cent compared with 5.94 per cent. A £599 fee (£299 for first-time buyers) applies. Finally, the lifetime tracker rate is to rise to 6.74 per compared with 6.54 per cent.
There will also be changes to remortgage and additional borrowing rates. Existing customers will be able to find a two-year fixed-rate deal from 6.75 per cent with a £599 fee (75 per cent LTV) – up from 6.45 per cent. A no-fee two-year fix will be 7.15 per cent compared with 6.85 per cent.
Three-year fixes for customers that are remortgaging
will start from 6.35 per cent, up from 6.05 per cent (£599 fee), five-year fixes with a £599 will start from 6.45 per cent compared with 6.20 per cent, as will five-year fixes with no fee (switchers only). Meanwhile, a 10-year fix with a £599 fee will start from 6.39, up from 6.14 per cent, and a 25-year fix with a £599 fee will rise to 6.53 per cent (75 per cent LTV) from 6.28 per cent.
Tracker deals for remortgagers will again rise only for those seeking 90 per cent LTV deals. Nationwide's two-year tracker (£599) fee will be 6.65 per cent compared with 6.45 per cent, its three-year tracker (£599 fee) will be 6.14 per cent, up from 5.94 per cent and its lifetime tracker will rise to 6.84 per cent from 6.64 per cent.
Divisional director for mortgages at Nationwide, Matthew Carter, said: "As a building society we always aim to offer our members 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.
"While markets remain volatile we can expect to see frequent changes to fixed-rate mortgages across the industry."
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