Nationwide raises fixes for the second time in two weeks

Nationwide raises fixes for the second time in two weeks




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As of today, interest rates on various fixed-rate mortgages from Nationwide Building Society will increase by up to another 0.5%.

This is the second time in a fortnight that the UK’s third largest mortgage lender has raised the cost of its fixed-rate deals.  

 

A spokeswoman for Nationwide has said that the lender is “tweaking” certain rates in order to “manage volumes of business.”

 

Woolwich, the mortgage brand of Barclays, has also announced that it will introduce new fixed-rates as of today. The two-year “Fix-and-Track” product for those with a 20% deposit has increased from 5.29% to 5.99%.

 

Woolwich also defended the move, saying: “In light of our competitors moving their rates upwards in the last few days, we have seen a massive demand for our mortgages, and so in order to control the flow of business we have had adjust our mortgage range in line with the market place.”

 

Brokers have widely condemned the “ripple effect” of lenders following each other in marking up interest rates on their best deals. With lenders afraid to break away from the pack and offer truly competitive products, it seems to be the biggest symptom that the mortgage market is still a way off from returning to health.    

 

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