Looks like Nationwide is increasing their fixed rates tomorrow

jediknightwarrior

I'm shocked at the level of the increases. Am I reading this correctly?

http://www.nationwide.co.uk/intermediaries/latest-news/mortgage_rates110408.htm

BoGoF

Yes you are and just goes to prove the point that the anticipated BoE interest rate cut will have no affect on the banks/bs rates for new customers.

Dick_here

If the base rate comes down, they'll surely have to pass on at least some of it to SVR customers. That would bring their SVR below the new rate for their 2 year (no fee) fix. It seems that they don't want people to fix with them at present.

ukwoody

I bet next year, banks report record profits....

woody

fitzmum

Blimey I was lucky....I returned the paperwork about 3 weeks ago - fixed at 5.68% for 10 years......

I actually rang them to confirm that I will get the rate - yes, the lady said as my offer was at 5.68 so that rate stands. She said I did it in the nick of time.....

hugglette

I can not believe this, when I took my fix out with them 5 years ago they were by far the best. now they are just awful!

bankersmug

fitzmum wrote: »

Blimey I was lucky....I returned the paperwork about 3 weeks ago - fixed at 5.68% for 10 years......

I actually rang them to confirm that I will get the rate - yes, the lady said as my offer was at 5.68 so that rate stands. She said I did it in the nick of time.....

Yep I've just switched to the same deal as you. I did wonder at the time if 5.68 was a little high, but in light of recent rises, I think I made the right decision. The question now is, will any ensuing rate cut leave us high and dry or will banks largely ignore it and we'll have to watch the Libor instead?

fitzmum

bankersmug wrote: »

Yep I've just switched to the same deal as you. I did wonder at the time if 5.68 was a little high, but in light of recent rises, I think I made the right decision. The question now is, will any ensuing rate cut leave us high and dry or will banks largely ignore it and we'll have to watch the Libor instead?

We I did say I was going to stop being interested in interest rates from now on as I'll be gutted if they drop a lot....... Just can't help myself though!!

lisyloo

If the base rate comes down, they'll surely have to pass on at least some of it to SVR customers.

No there is no obligation on them to do so.
Under normal market conditions in practice they would be forced by market competition, but we are not in a period of normal market conditions.

Dick_here

lisyloo wrote: »

No there is no obligation on them to do so.
Under normal market conditions in practice they would be forced by market competition, but we are not in a period of normal market conditions.

They have already said that they will pass on the full cut this time:
http://news.bbc.co.uk/1/hi/business/7340478.stm

Now would you care to answer my original point ?

Lurking_Lawyer

Glad I happened to check on here today and spot this!

A chunk of my Nationwide mortgage - around 50% of it, as it's split into 4 separate accounts - comes off fix on 31 May. I procrastinated and missed the rates available before the last 0.25% hike they imposed, and have an appointment to see an advisor in the local branch on 26 April.

Seeing this, I decided I wasn't going to wait and see another 0.3% get added to the rates so phoned up and secured today's rates on a 5 year fix. That really WOULD have irked me had I not seen this until tomorrow.....

Interesting point about the SVR -v- 2 year fixed rates with no fee, !!!!!! here. I was a bit surprised that they decided to pass on the rate cut given that they ignored the last base rate cut.

I did umm and err about leaving my own rate to float on the SVR for a few months to see what happened and whether cheaper fixed rates materialised, but I decided that I couldn't see it happening for a while and that, with our first baby due in 10 days or so, I preferred to know how much I would have to pay month on month.

Doubtless I'll rue that decision in a year or two if rates come down a lot and I'm paying way over the odds, but c'est la vie, I guess.....