Nationwide raises interest on fixed-rate and tracker deals

Nationwide Building Society has announced rises in its fixed-rate and tracker mortgages, from 17th June.

New borrowers with a 10% deposit taking out two and three-year fixed loans face a 0.5% hike in interest rates, increasing the cost of a typical £150,000 mortgage by around £600 a year.

A two-year fixed-rate loan will be available at 6.55% on 75% loan-to-value (LTV) compared with 6.25% previously (£599 fee applies).

At 90% LTV the two-year fixed-rate becomes 6.95% compared with 6.45%; a 95% LTV deal rises to 7.25% compared with 6.95%.

The building society’s 75% LTV three-year fixes will be available from 6.35% compared with 6.05% (a fee of up to £599 applies).

Meanwhile five-year fixes on 75% LTV start at 6.35%, up from 6.10% (£599 fee applies).

Tracker rates are also increasing, with Nationwide’s two-year 90% LTV tracker mortgage rising from 6.35% to 6.55; three-year rates will rise to 6.14% compared with 5.94% (maximum fee £599).

The building society’s divisional director for mortgages, Matthew Carter, says the rises are due to continued volatility on the money markets and that he expects changes to fixed-rate loans to continue to be frequent across the entire UK mortgage sector.

At the end of last week Halifax, RBS and around twelve other lenders increased rates on fixed-rate loans in response to higher market swap rates.

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