Nationwide will increase fixed rates and set track rates by up to 0.20%, effective September 10.
This includes rates across first-time buyer, home moving, existing customers moving home, and remortgage products.
It will also affect the adapter and additional borrowing ranges.
The lender’s lower two-year interest rate rose from 4.48% to 4.63%, while the five-year interest rate also rose from 4.5% to 4.59%.
Commenting on the increases, Trinity Financial’s Director of Products and Communications, Aaron Strut, says: “The cheapest two-year fix nationally is rising from 4.48% to 4.63% which is disappointing as it was one of the best premium buy-in rates and popular with borrowers looking for short-term deals at competitive rates.”
“The five-year nationwide fixed rate is also rising from 4.5% to 4.59%, so it is not rising as much as many other fixed interest rates.”
“Nationwide last changed its mortgage interest rates on August 18, which is a very long time in the current economic climate. Many other lenders change interest rates more frequently, so Nationwide is one of the last large providers to raise interest rates following a cost of funding increase.”
“Halifax has the most competitive two-year fix rate starting at 4.40% with a fee of £999, but it is only available to those earning over £100,000 who want to open a Lloyds Premier current account,” Strut points out.
“The two-year fixed rate is 4.60% for anyone buying a home through Halifax and earning less than £100,000. Santander’s two-year fixed rate is also still very reasonable at 4.52% and has a fee of £1,499.”
Nationwide is following a series of lender increases over the past week. Halifax Intermediaries, BM Solutions, Acord Mortgages and InterBay announced rate changes yesterday.
