Nationwide alters tracker mortgage rates

Published: November 30, 2007

Nationwide Building Society has revealed that it is increasing the rates on some of its range of tracker mortgages.

The lender said that the new rates would be available from December 4th.

From this date, the interest rate on its two-year tracker (with £599 fee) will be 5.83 per cent. For customers who want this two-year deal but don't want to pay a fee, the rate will increase to 6.23 per cent.

In addition, Nationwide's two-year tracker with a £1,499 fee will see its rate reach 5.73 per cent.

The lender also announced new deals for customers who are remortgaging. For example, two-year tracker remortgage deals have rates which range from 5.83 per cent to 6.38 per cent.

Matthew Carter, divisional director for mortgages at the lender, commented: "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."

Recently, Nationwide said that its figure indicate that house prices dropped by 0.8 per cent in November.