A journalist at Thisismoney / Mail Online is looking for some quick comments (deadline 2pm today) on the fixed and tracker mortgage rate rises Nationwide has announced. Briefly:
On Thursday 6 January, Nationwide will be making rate changes on selected two, three and five-year fixed rate and two-year tracker products at all Loan-to-Values (LTVs) across its mortgage range.
The changes will see rates on selected two and five-year fixed rate products up to 95% LTV and on selected two-year tracker rates up to 85% LTV increase by between 0.05% and 0.20%. The Society’s three-year fixed rates will no longer match the equivalent two-year products and as a result will increase by between 0.05% and 0.45%.
Remortgages will see some of the largest increases:
- Two-year fixed rate at 60% LTV increased by 0.10% to 1.44%, with a £999 fee.
- Five-year fixed rate at 80% LTV increased by 0.10% to 1.94%, with a £999 fee.
- Three-year fixed rate at 75% LTV increased by 0.20% to 1.64%, with a £999 fee.
As well as three year fixes, some of which will be subject to largest increase of 0.45%.
The journalist's questions are:
- What will these rate changes mean for households?
- Are they fair in respect of the base rate rise (and the fact savings rates are not increasing)?
- Might Nationwide be increasing rates by more than the 0.15% base rate rise in anticipation of further rises.?
Most other lenders haven't published their rate rises so it is difficult to compare, but if you have any insights into what rises are happening elsewhere that would also be appreciated.