Demand sees Nationwide pull deals

Nationwide has blamed high demand for the withdrawal of a number of fixed rate products and the increase in the rates of other deals.

Last week the lender pulled its two-year fixed rate deals at 5.82%, 6.02% and 6.52% plus its three-year fixed rate products at 5.95%, 6.15% and 6.65%.

The building society’s five-year fixed rate deal is now 6.15% up to 75% LTV, 6.35% up to 90% LTV and 6.75% up to 95% LTV. Fees on the product have jumped from £499 to £699.

The two-year fixed rate deals in its Option A range now stand at 6.1%, 6.3% and 6.8%. Their fees remain at £499.

The mutual says the changes are consistent with competitors that have hiked product rates and withdrawn deals.

A Nationwide spokeswoman says: “Despite adjusting our rates throughout the first part of the year, our strong brand has led to healthy demand for our products.

“We need to maintain control on the volume of business we’re attracting by ensuring we are pricing our products appropriately while providing a high standard of service to customers.”

The changes to the mutual’s fixed rates will apply to new mortgage and remortgage customers.

The Royal Bank of Scotland, Alliance & Leicester and Britannia also raised rates last week.