Nationwide rates to increase by +.30% across the board.

ad9898_3

BoE starting to become irrelevant, market sets the rates.

Furthermore, the building society will also increase the rate on its three-year fixed remortgage to 4.39 per cent for a loan of up to 60 per cent LTV.
According to Nationwide, all other rates and lending criteria will remain unchanged.
The society's subsequent additional borrowing fixed rate products for existing borrowers from tomorrow include a two-year fixed with no fee at a rate of 5.68 per cent for up to 60 per cent LTV, or 5.88 per cent for up to 75 per cent LTV and a rate of 7.53 for 85 per cent LTV.

Meanwhile, its two-year fixed product with a fee of £599 will have a rate of 4.98 per cent, 5.18 per cent or 6.78 per cent for loan sizes of 65 per cent LTV, 75 per cent LTV, and 85 per cent LTV respectively.
A three-year fixed with a fee of £995 will offer a rate of 5.08 per cent on loans of up to 65 per cent, LTV, while the five-year fixed rate product, also with a fee of £995, will come with a rate of 5.78 per cent.

http://www.ftadviser.com/FTAdviser/Mortgages/Products/Fixed/News/article/20090609/6ec0d5d0-54e1-11de-b9ea-0015171400aa/Nationwide-overhauls-mortgage-range.jsp

wymondham

This is just the start -the dust has settled and banks/building societies need to make money and fast ... they've given it a few months of low levels to please Gordon, now they need to get on and run their business...

Graham_Devon

Nearly 7% for an 85% loan, when base rates are 0.5%?

Thats insane. If they continue with the difference after the short 2 year fix, and rates are at 5%, the mortgage would be at nearly 12%! On top of that, a big fee of £599?!

Never understood fees by the way. Bit like me going to tescos, paying for my shopping and then paying them £10 on exit for the pleasure of buying products from them! What other busuiness / service where you are buying a product that makes them money, charges you a fee?!

Best time to buy?!?

kennyboy66_2

ad9898 wrote: »

BoE starting to become irrelevant, market sets the rates.

http://www.ftadviser.com/FTAdviser/Mortgages/Products/Fixed/News/article/20090609/6ec0d5d0-54e1-11de-b9ea-0015171400aa/Nationwide-overhauls-mortgage-range.jsp

The market has always set the rates for fixed rate motgages.

chucky

ad9898 wrote: »

BoE starting to become irrelevant, market sets the rates.

http://www.ftadviser.com/FTAdviser/Mortgages/Products/Fixed/News/article/20090609/6ec0d5d0-54e1-11de-b9ea-0015171400aa/Nationwide-overhauls-mortgage-range.jsp

you sound surprised?
the money markets always sets the rates
Base rate is the interbank lending not lending to customers.

nearlynew

Graham_Devon wrote: »

Nearly 7% for an 85% loan, when base rates are 0.5%?

Thats insane. If they continue with the difference after the short 2 year fix, and rates are at 5%, the mortgage would be at nearly 12%! On top of that, a big fee of £599?!

Never understood fees by the way. Bit like me going to tescos, paying for my shopping and then paying them £10 on exit for the pleasure of buying products from them! What other busuiness / service where you are buying a product that makes them money, charges you a fee?!

Best time to buy?!?

Brilliant isn't it?

You are but a few steps away from revealing the bankers' secret.

Keep thinking, keep digging and you will eventually arrive at a conclusion which will horrify and delight you in equal measure.

ad9898_3

chucky wrote: »

you sound surprised?
the money markets always sets the rates
Base rate is the interbank lending not lending to customers.

Oh, I understand that chucky, but the masses generally hang off everything the MPC say. Just making the point.

dixie_dean_2

The hard question is when will fixes start to shoot up and hpow quickly will it happen?

ad9898_3

dixie_dean wrote: »

The hard question is when will fixes start to shoot up and hpow quickly will it happen?

I think fixes have been at a low point for some time now, the only way really is up from now on.

dealsearcher

Meanwhile their savings rates are continuing to fall rapidly. Their eSaving rate is now at 0.45% AER!

ad44downey

ad9898 wrote: »

Nationwide rates to increase by +.30% across the board.

This is only the appetiser. What's it going to be like when the BoE interest rate goes through the roof? There'll be blood on the streets :eek: