Nationwide increased mortgage rates?

Penelopa.Pitstop

I tend to check mortgage rates on Nationwide website and their Press Releases to see what's up in case I decide to change my tracker to fix in case of BOE rate change.

Today I noticed that offer for existing customers has changed and fixed products went up by 0.15%. For example 2 year fix for LTV below 60% was 1.09% and now it's 1.24%.

No official info anywhere. Another way to save some money for Nationwide, after raising prices of accounts?

kingstreet

As none of us know what they are paying for the swaps that make these possible, it's impossible to reach any kind of conclusion.

Penelopa.Pitstop

It's disappointing that they always published info about product changes and there's plenty of articles when rates are going down, but nothing when they went up.

Anyway, disappointing, as I was planning to fix at 1.09%.

antrobus

Penelopa.Pitstop wrote: »

..Today I noticed that offer for existing customers has changed and fixed products went up by 0.15%. For example 2 year fix for LTV below 60% was 1.09% and now it's 1.24%....

The pricing of mortages has more to do with LIBOR than base rate.

P.S. I don't monitor LIBOR, so I don't know what it's doing.:)

Thrugelmir

Penelopa.Pitstop wrote: »

No official info anywhere. Another way to save some money for Nationwide, after raising prices of accounts?

Save money? BOE recently announced requirements on mortgage lenders to hold more capital on their balance sheets. In very simple terms. Net effect of the change is to reduce the amount lenders can advance. Therefore they will need to charge more interest on new products to maintain the status quo.

There's many ways to skin a cat that don't require a change in BOE base rate. Lenders will constantly change their rates depending on a number of factors.