Nationwide lifts cost of fixed-rate mortgages
The society also reintroduced its five-year mortgage, withdrawn on 22 February when rates in the money markets were rising sharply, at a new level 1.54 percentage points higher - a sign of the startling change of sentiment in the fixed-rate market.
The new three-year rate is 7.69 per cent for borrowers on 95 per cent mortgages, or 7.49 per cent for those able to put up at least a 15 per cent deposit. For a five-year mortgage the rate is 8.79 per cent.
Last Friday, the Halifax and Abbey National blamed a rise in money market rates for increases in their fixed rates. Halifax's five-year mortgage rose from 7.75 per cent to 8.85 per cent, while Abbey National announced similar rises but pitched its mortgages slightly lower.
Dennis Brockwell, divisional director of marketing at Nationwide, made clear the society wanted to encourage variable- rate mortgages.
Variable-rate mortgages are funded from savers' money while fixed mortgages are backed by money market borrowing. Despite the fall in bank base rates to 5.25 per cent, building societies raised the cost of fixed-rate mortgages to meet higher costs in the money markets.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...