Nationwide fends off new mortgage business

| March 28, 2008 | 0 Comments

Nationwide, the UK’s biggest building society, has increased interest rates in a move aimed at discouraging borrowers.

The lender’s two-year tracker rates have risen by 0.57% for new borrowers, while its fixed-rate mortgages will rise by an average of 0.2%.

The building society says it is focusing on quality of business rather than quantity.

Matthew Carter, Nationwide’s director of mortgages, comments: “Nationwide sympathises with anyone who is concerned about the availability of affordable mortgages. We continue to offer our customers a wide range of fixed and variable rate mortgages up to 95% loan to value with, as always, a focus on prudent and responsible lending rather than volume.”

The news came as the British Bankers’ Association reported that 33% fewer loans for house purchases were approved by its members in February (compared with February 2007).

The credit crisis has left lenders struggling to raise funds in the financial markets and mortgage products are being withdrawn on a daily basis.

Notably, lenders are being forced to withdraw deals that are included in best-buy tables, because they cannot fund the level of demand that arises.

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