Nationwide to increase mortgage and savings rates by 0.25%

Following yesterday’s increase in the Bank of England Base Rate, Nationwide will be increasing rates on all variable rate mortgage and savings products by 0.25% on 1 February 2007.

As always, all Nationwide variable rate products, both mortgage and savings, will change at the same time.

Mortgages

The Base Mortgage Rate (BMR) will be increased from 6.49% to 6.74% leaving it around 0.50% lower than the Standard Variable Rate (SVR) of most other high street lenders - assuming they also increase their SVR in line with the Base Rate. On this basis, a customer could save £12,700 with Nationwide on a £100,000 interest only mortgage over a 25 year term.

Tracker Mortgage rates will also move in line with the Bank of England base rate and this change will be effective from 1 February 2007.

Savings

All variable rate savings products will be increased by 0.25%. Further details of the new rates will be issued in due course and will be effective from 1 February 2007.

Stuart Bernau, executive director, Nationwide, said: “The changes we are making to our mortgage and savings rates are relatively straightforward and simple. We are pleased to be able to act quickly to make it clear to our members how they are going to be affected following the increase in the Bank of England Base Rate. However, changes to mortgage rates will not take effect until 1 February and savings rates will be increased at the same time.

“All Nationwide mortgages offer consumers a range of flexible features. Nationwide also calculates interest on a daily basis and does not make a higher lending charge for high percentage borrowing. Nationwide continues to offer some of the most competitive mortgage and savings rates on the high street.”