Nationwide increases fixed rates

Nationwide will increase rates on its range of fixed rate mortgages and launch two new products. It has unveiled a three-year fixed rate available at 5.75% and a three-year tracker available at 5.99%, available to borrowers dealing directly with Nationwide.

Matthew Carter, Nationwide’s director of mortgages, said: “We understand borrowers’ concerns about the availability of affordable mortgages. Our newest offers are designed to meet the needs of those borrowers who deal with us directly. They demonstrate our commitment to offering good value mortgages whilst keeping a focus on prudent and sustainable lending.

“We have increased some of our fixed rates to continue maintaining control on the volume of business the society is currently attracting.”

Louise Cuming, head of mortgages at moneysupermarket.com, said: “Gone are the days brand new customers would be treated well at the expense of existing ones. Nationwide has increased interest rates and fees for new customers on its fixed-rate mortgages by up to 0.32%. However, following the Bank of England Base Rate fall it has also announced a 0.25% decrease to its base mortgage rate from 1 May on standard variable rates and tracker deals for existing customers.

“Overall this has been a bad week for borrowers with many providers announcing intentions to increase rates on fixed rate products despite base rate being cut to 5%, further highlighting the divorce between the Bank of England’s rate and the deals offered by mortgage providers.

“Consumers must remain on their guard and jump on attractive deals immediately as they can be certain they won’t stick around for long.”