Nationwide has announced that it will be raising the rates for all of its 10-year, five-year, three-year and two-year fixed-rate mortgage products, with this change being implemented immediately.
The new rates will apply to all of these fixed-rate products that have a loan-to-value (LTV) of up to 95%, and they are set to affect first-time homebuyers, those hoping to move to a new property and people who are remortgaging their current home. Those in the first of these groups are facing an increase in their mortgage rates of anything from 0.05% to 0.25%.
Nationwide customers who are seeking to get a move to a new property will face rate rises of 0.02% to 0.20% as a result of these changes, while for people remortgaging, the rates will now be between 0.10% and 0.35% higher than they were before.
These are not the only areas where rates are going up though, as the further advance and switcher rates will also rise by anything from 0.05% to 0.10%. Nationwide shared equity rates are going up by a minimum of 0.05% and maximum of 0.15%.
A spokesperson for Nationwide told Mortgage Strategy that the rises reflected the overall situation for the market, adding:
“As a member-owned organisation we are not immune to this, and we need to ensure our new business mortgage rates are sustainable, whilst also ensuring Nationwide remains well-positioned in the market.”
The current rates situation is something that mortgage advisors will have to use their CeMAP training skills and know-how to help clients with.