Nationwide to increase some tracker rates.

KTF

If you were considering one of these deals then it would be wise to get it sorted before Tuesday.

Nationwide Building Society today announces an increase in rates on some of its range of tracker mortgages. The new rates are available from Tuesday 4 December 2007.
The new details are as follows:
House purchase
Two year tracker (with £599 fee) available from: 5.83% (previously 5.68%)
Two year tracker (no fee) available from: 6.23% (previously 6.08%)
Two year tracker (with £1,499 fee) available from: 5.73% (previously 5.58%)

Remortgage and Additional Borrowing
Two year tracker (with £599 fee) available from: 5.98% (previously 5.83%)
Two year tracker (no fee) available from: 6.38% (previously 6.23%)
Two year tracker (with £1,499 fee) available from: 5.83% (previously 5.68%)


Matthew Carter, divisional director for mortgages at Nationwide, said: “Nationwide’s tracker products continue to offer borrowers great value. However, the costs of funding have increased and we have found it necessary to follow other lenders who have recently increased their rates."


“All our tracker mortgages offer the facility to switch and fix from a tracker mortgage to a fixed rate deal at any time, without incurring early repayment charges, offering borrowers extra flexibility should their personal circumstances change.”


Nationwide will withdraw the current products at 11.59pm on Monday 3 December 2007.

From: http://www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=1118

Dan_Collins_2

A sign that lenders cannot afford to lend money cheap even Nationwide!

17Dave

Like most mortgage advisers my inbox is stuffed with rate withdrawals and replacement (higher rate) products.

I believe that even if the bank of England reduce interest rates next week that mortgage rates will NOT follow in the short term. We have had really cheap rates with lenders on very slim margins for too long.

meanmachine_2

And swap rates have gone up again this week.

LIBOR rate now at 6.6%, so any mortgage deal below that either carries a hefty arrangement fee, or is a loss leader.

No wonder NRock are offering savers 6.49% - it's still LESS than the interbank rate.

Strange times indeed.

free4440273

^^^Makes you wonder: even if the BofE cut rates drastically (say, one per cent) this would make no difference to Libor; indeed it would still probably spike sharply. Ditto the Fed: they can cut to zero if they so wish; this is more about Trust (and lack of it)

dave76

I assume that if I already have a mortgage offer on one of these products that is changing, I retain that rate even though my purchase will not be completed for a couple of weeks yet?

KTF

Yes, that is correct.

poppy10_2

free4440273 wrote: »

even if the BofE cut rates drastically (say, one per cent) ...it would still probably spike sharply.

Why?

free4440273

^^^Makes you wonder: even if the BofE cut rates drastically (say, one per cent) this would make no difference to Libor; indeed it would still probably spike sharply. Ditto the Fed: they can cut to zero if they so wish; this is more about Trust (and lack of it)

poppy10 wrote: »

Why?

I'm no expert on these matters;). This is how it translates to me: Banks are reluctant to lend to each other because they want to keep their balance sheets as small as possible over the year-end, and so that their final accounts reflect this. It is particularly important this year as their balance sheets have been bloated (decimated??) by write offs in the subprime market. Will reductions in the BofE base rate impact on Libor?? I think not. This seems to suggest absolute distrust and lack of transparency amongst the banks and between each other. That's probably just part of the analysis; others on here would be far more qualified to fill in the gaps.

Like i say, i'm no expert but this link might be helpful.:)