Nationwide increases SVR

Nationwide has confirmed it is increasing its base mortgage rate from December 1 by 0.25%.

The BBR will increase from 6.24% to 6.49%, although the lender says it is still around 0.50% lower than the SVR of most other major high street lenders assuming that they also increase their SVRs in line with the base rate.

This follows yesterday’s decision by the Bank of England’s Monetary Policy Committee to increase the base rate by 25 basis points to 5%.

Both savings and mortgage rates will be increased on December 1 although details of savings rates will be announced in due course.

Assuming other major lenders increase their SVRs in line with the increase in the base rate, Nationwide says the savings a customer would make with it on a £100,000 mortgage will be £9,644 over a 25-year term.

Tracker mortgages will move in line with the base rate and this change will be effective from December 1.

Halifax is also increasing its SVR from 6.75% to 7.00%.