Nationwide increases tracker rates

Nationwide Building Society is increasing rates on some of its mortgage deals by up to 0.3%.

From 18th March, remortgagers with a 40% deposit will pay interest at 3.93% for a two-year tracker, up from 3.63% previously.

Homeowners with only 25% of equity in their properties will be charged at 5.08% for a similar deal, while existing Nationwide customers who need to borrow 95% of the value of their homes will pay at 5.63%.

The lender’s three-year tracker mortgage rate for those with a 40% deposit increases by 0.2% to 3.58%.

At the same time, a three-year fixed-rate deal for people remortgaging increases by 0.2% to 4.18%.

However, it should be noted that the March cut in the Bank of England’s base rate means that all Nationwide tracker rates will fall by 0.5% from 1st April.

Nationwide says the changes reflect increased funding costs and the need to reprice to remain in line with its competitors.

The building society’s is also introducing a new mortgage tier for people borrowing between 75% and 85% of their property’s value;
those borrowing between 75% and 80% will in future benefit from a slightly lower rate.

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