Concerns over whether are not the rate cuts by the Bank of England (currently at 4.5%) will eventually trickle down through to high street lenders thus giving a much-needed rate cut for UK homeowners. The UK’s largest mortgage lender, Nationwide Building Society, has confirmed it will be raising its rates on their home loans for a second time in less than 2 weeks.
For those seeking tracker mortgages, since tracker rates follow the BoE’s base rate, Nationwide has revealed it would be adding between 0.24% and 0.6% to the cost of its tracker deals, says the Guardian.co.uk
Last week saw the lender’s tracker mortgage products increase by 0.3% and the smaller your deposit the more you’ll feel the increased price rise as the tracker margin on large loans has gone up by 0.6%.
The Guardian reported, “On the society’s lifetime tracker deal, borrowers with less than 25% to put down will pay a margin 2.03% above the base rate - an increase from the current margin of 1.43%.
On the three-year deal the margin will be increased from 1.49% to 2.08% for borrowers with deposits between 10% and 15%.”
Divisional director of mortgages at Nationwide, Matthew Carter, said: “It is regrettable that we have to increase our tracker rates, but we must take into account ongoing volatility in the wholesale markets and the high cost of funding,” he said.
“These changes will allow us to maintain control of the volume of business the society is attracting, and to continue lending in a responsible and prudent way.”
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