Nationwide to increase savings and mortgage rates
Nationwide Building Society today announces that it will increase savings rates and its Base Mortgage Rate (BMR) from 1 August 2007. This follows the decision by the Bank of England’s Monetary Policy Committee on Thursday 5 July to increase the Base Rate by 0.25%.Savings
The vast majority of variable rate savings accounts will receive an increase of 0.25%, with some savers seeing an increase of 0.35%.
Key increases to the Society’s most popular accounts include:
Instant Access ISA will increase by 0.25% to a maximum of 5.75% Gross p.a/AER
Monthly Income 60+ will increase by 0.25% to 5.71% Gross p.a./5.86% AER
Cash Child Trust Fund will increase by 0.25% to 6.25% AER/7.25% AER
Smart, the children’s account, will increase by 0.25% to 5.95% Gross p.a./6.04% AER
e-Savings will increase by 0.25% to 5.80% Gross p.a./AER
Regular Savings will increase by 0.25% paying up to 6.75% Gross p.a./AER
CashBuilder accounts will increase by 0.35% on one tier and 0.25% on other tiers.
Mortgages
Nationwide’s BMR will be increased by 0.25% from 6.99% to 7.24% 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.
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 repayment mortgage will be around £10,000 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 August 2007.
A range of flexible features is 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 Higher Lending Charge (also known as mortgage indemnity guarantee) or fees for high percentage borrowing.
Matthew Carter, divisional director, mortgages and savings, said: “Nationwide is committed to providing long-term good value to borrowers and savers through accounts which are simple, straightforward and easy to understand. Our members continue to benefit from some of the best mortgage and savings rates available.
“We are pleased to be able to pass on the full base rate increase of 0.25% to the vast majority of our savings customers. For borrowers with variable rate tracker products who would now prefer the stability of fixed payments we have a switch and fix facility available allowing them to switch to any of our fixed rate products without incurring an early repayment charge.”