A “volatile” market has caused Nationwide to announce increases on its mortgage and remortgage rates.
From tomorrow, the two-year fixed rate on a 95 per cent loan-value (LTV) mortgage will climb from 6.95 per cent to 7.25 per cent. There are similar increases across the mortgage packages available.
For those arranging remortgages, the two-year fixed rate for 95 per cent LTV agreement will increase to 7.45 per cent from 7.15 per cent.
A third of mortgages and around a half of remortgages will have interest rates of over seven per cent.
Nationwide’s divisional director for mortgages, Matthew Carter, said higher money market rates and competitor activity has resulted in the mortgage rate increases.
“While markets remain volatile we can expect to see frequent changes to fixed rate mortgages across the industry,” he stated.
More homeowners are choosing to remortgage rather than move house, according to a report earlier this month. Your Mortgage said that remortgaging has risen while the mortgaging sector has fallen, partly due to concerned first-time buyers.
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