RSS FeedsUK Mortgage lender increases tracker rates
25/01/2008
The second biggest mortgage lender within the UK has increased its interest rates for tracker mortgages. The hike will be expected to be around 0.05 per cent and 0.15 per cent depending on which specific product is selected. The sudden increase comes as little to surprise to some as the Bank of England have not made any increases as of late.
As a result of more pressures on the cost of funding, Nationwide have had to resort to passing over these costs to their customers. Nationwide are not the only lenders to have increased their interest rates, in fact others such as Bradford and Bingley and Woolwich have done so during the early part of this year.
Mathew Carter, Nationwide’s mortgage director said "The costs of funding from both the wholesale and retail markets have increased, and we have found it necessary to follow other lenders who have recently increased their rates," he further added "We have had to reflect these increased costs in the pricing of our tracker mortgages".
For many customers this comes as worrying news knowing that they are likely to be paying more for their tracker mortgages; however some industry experts believe it is still worth considering this type of mortgage as the could be Bank of England interest rates cuts.
The Monetary Policy Committee for The Bank of England are in voted generally for rates to be cut by 0.25% to 5.5
In December the Bank of England's rate-setting Monetary Policy Committee (MPC) voted unanimously to cut rates by 0.25 per cent to 5.5 per cent.