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Nationwide increases mortgage rates

Nationwide has responded to last week’s Bank of England interest rate decision by adjusting its savings and mortgage rates upwards.

Savings rate changes will start on 31 August and will include the help to buy Isa rate being upped from 2 per cent to 2.50 per cent.

Mortgage rate increases will take effect from 1 September, with Nationwide’s base mortgage rate increasing to 2.75 per cent (currently 2.50 per cent), and the standard mortgage rate to 4.24 per cent (currently 3.99 per cent). Meanwhile, tracker mortgage rates will go up by 0.25 per cent.

Nationwide executive director of products and propositions Chris Rhodes says: “The sustained low interest rate environment and competition in our core markets will maintain the pressure on margins. Despite this pressure, the Society is opting to put mutuality ahead of margin.

“So, while £41 billion of Society mortgage balances will see an increase as a result of the bank rate change, more than £70 billion of savings balances will also receive an increase. Following these changes, we will continue to offer some of the most competitive savings and mortgage rates on the high street.”

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