Nationwide to raise rates on tracker and fixed rate deals

Commenting on Nationwide's decision to raise rates on its tracker and fixed rate deals by up to 0.6 per cent and withdrawing some of its most popular deals, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said: " Yet another door has slammed shut in the face of homeowners with one of the UK's biggest lenders giving the consumer the cold shoulder. Our own research showed that just three months ago, Nationwide was the UK's most trusted financial brand, but this trust may now be damaged. I understand it wants to protect its margins in this frosty environment, but this decision might not help Nationwide in the long-term.

"This is the culmination of a dire week for borrowers, with a raft of smaller lenders also moving the goalposts for their customers by withdrawing product ranges and upping rates. People heading towards the end of their deals, who might be starting to panic, should stay calm and shop around early. Look around five months before the end of your term as there are some good value deals on the market, particularly for those with a good credit record and substantial equity in their homes."