Nationwide to increase mortgage rates

Nationwide Building Society has announced that it will increase its Base Mortgage Rate (BMR) from 1 June 2007.

The BMR will be increased by 0.25% from 6.74% to 6.99% leaving it around 0.50% lower than the standard variable rates of most other major high street lenders assuming that they also increase their SVRs in line with the Base Rate. This follows yesterday's decision by the Bank of England's Monetary Policy Committee to increase the Base Rate by 0.25%.

Assuming other major lenders increase their SVRs in line with the increase in the Base Rate, the savings a customer would make with Nationwide on a £100,000 mortgage will be £9,760 over a 25-year term.

Tracker mortgages will move in line with the Bank of England Base Rate and this change will be effective from 1 June 2007.

A range of flexible features are available on all new Nationwide mortgages, offering the borrower the ability to overpay, underpay or take a payment holiday. Nationwide calculates interest on a daily basis on all products and does not charge a Mortgage Indemnity Guarantee (MIG) or fees for high percentage borrowing.