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

Thrugelmir

Degenerate wrote: »

As for Nationwide, the SVR they offer existing customers is the lowest in the industry due to a prior commitment not to raise it higher than BOE base rate + 2%. They are putting up rates for new customers and other products to recoup their losses from the low SVR.

Ah. A lot of people have missed a subtle change. All existing borrowers now coming off an existing fixed term product pay base +3.5%.

I think the change was around the end of April.

tomterm8

chucky wrote: »

someone please explain to her that the BOE base rate doesn't have much to do with mortgage rates unless you have a Libor or BOE tracker...

Most of the different mortgage products allow the banks to change the spread, so even Libor or BOE trackers aren't all that closely linked with base rates.

Numenor

Thrugelmir wrote: »

Ah. A lot of people have missed a subtle change. All existing borrowers now coming off an existing fixed term product pay base +3.5%.

I think the change was around the end of April.

You might want to double check that. I was under the impression that the people who will be going on to that higher SVR are those who take out a fixed term product after April.

Thrugelmir

Numenor wrote: »

You might want to double check that. I was under the impression that the people who will be going on to that higher SVR are those who take out a fixed term product after April.

Per the Nationwide.

Customers with deals reserved on or before 30 April 2009 revert to the variable Base Mortgage Rate (BMR), our Standard Variable Rate, for the remainder of the mortgage term

So any existing customers who have not reserved deals are in for a shock........

Numenor

Thrugelmir wrote: »

So any existing customers who have not reserved deals are in for a shock........

Which is exactly what I said. We seem to be arguing the same point, maybe I misunderstood your initial comment.

Are we agreed that those whose deals started BEFORE April are not going onto the higher SVR, they're going onto the original SVR that they were told about when they reserved their deal?

My 5-year fix started in 2006 - I will therefore be going onto the lower SVR. Yes?

mewbie_2

Numenor wrote: »

My 5-year fix started in 2006 - I will therefore be going onto the lower SVR. Yes?

In 2011? That's a way off yet.

Numenor

Indeed it is, and there will quite possibly be no difference in the SVRs by then as they'll both have gone up to about 8%

Degenerate

Numenor wrote: »

Are we agreed that those whose deals started BEFORE April are not going onto the higher SVR, they're going onto the original SVR that they were told about when they reserved their deal?

My 5-year fix started in 2006 - I will therefore be going onto the lower SVR. Yes?

I believe this to be correct. If they were allowed to welch on the 2% commitment to existing customers, they wouldn't have had to introduce the new rates in the first place.

macaque_2

Here's another one about the Nationwide. Now where's my cello?


http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=2827105

Nationwide plans rate hike shock
Wed 10 Jun 2009

LONDON (SHARECAST) - Homeowners planning to take out a new fixed-rate mortgage deal are being urged to get their skates on following reports that Nationwide is planning to hike its most popular deals.

The UK’s third largest mortgage lender is said to be preparing increases of up to 0.86% on its five-year fixes, 0.61% on two-year deals and 0.26% for a three-year fix.

It’s thought the building society will bring in the new rates on Friday.

Ray Boulger at mortgage broker John Charcol warned earlier today that the cost of fixed rate mortgages was set to increase in line with a rise in swap rates.

“Yesterday we saw another sharp rise in swap rates, following closely on from other recent increases,” Boulger said.

“The scale of the increase was large enough to be the straw that breaks the camel's back and as a result I expect several lenders to increase the cost of at least some of their fixed rate mortgages over the next few days.”

Numenor

TBH I really hope something can be done about the extra contributions they've had to make to the FSCS fund, as it can hardly be considered fair for the one institution to have managed itself correctly and not needed any handouts/bailouts to have to pay so much more to subsidise the irresponsible ones. A mechanism should be worked out that appropriately reflects the fact that the Nationwide conducted itself properly throughout the boom.