Nationwide Building Society INCREASES mortgage rates in blow to Britons

The building society is making rate changes across a range of two and five-year fixed rate products.

These changes from Nationwide are effective from today.

According to the financial institution, the new interest rates will be applicable to all new mortgage applications.

Interest rates are only rising between 0.04 per cent and 0.15 per cent.

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Homeowners have been stuck with soaring mortgage repayments in recent years due to recent actions from the Bank of England.

In response to high inflation, the central bank chose to raise the UK's base rate 5.25 per cent in an attempt to ease the consumer price index (CPI) rate.

In August, the Bank's Monetary Policy Committee (MPC) narrowly voted to slash interest rates to five per cent which was passed down to mortgage lenders from high street banks and building societies.

Analysts are pricing in another interest rate reduction by the end of the year but lenders remain cautious over cutting too early.

Speaking to Newspage, brokers shared their reaction to the latest move from Nationwide Building Society.

Darryl Dhoffer, the managing director at The Mortgage Geezer, said: "In all fairness to Nationwide, they have been hoovering up a lot of the mortgage market in recent weeks.

"They've been so competitive that they are likely now increasing rates slightly to manage current work transactions more than anything.

"All eyes, at least for those who dare look, are now on the Budget. The increasingly sombre signals emerging from the Government suggest it could be a fiscal event to forget."

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Elliott Benson, the owner at Sett Mortgages, added: "Nationwide have been leading the lower rate charge for a long time, and sometimes a lender has to increase slightly to maintain service levels.

"I don't think this is anything more than that, especially given that Barclays has also been very competitive laying a smackdown today with a sub-four per cent two-year fix."

Justin Moy, the managing director at EHF Mortgages, shared: "Nationwide had held their rates since the September 24, so it was inevitable a small increase was on the cards at some point, but full marks to them for keeping their nerve over the past few weeks while others reacted with perhaps too much haste.

"The almost unique opportunity to reserve a mortgage deal for up to three months will make this more of a soft landing when compared to others who gave brokers just a few hours to react."