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Nationwide Hikes (and I Mean Hikes) Rates

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Nationwide Product News

Product News

27th March 2008

Nationwide Changes to Mortgage Rates effective 28th March 2008

In Summary

We are making the following changes to our mortgage products with effect from 28th March 2008.

Withdrawal of selected 2 year tracker and 2 year fixed rate products

All fixed rate product rates increased by 0.20%

Selected tracker products increased by 0.51% and 0.57%

Don't forget, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange) until 5pm 27th March 2008.

Full details of the changes are listed below. All other products and rates remain the same.

We have recently been experiencing large numbers of mortgage applications and with recent competitor changes this is likely to increase. However, as a prudent institution we have to manage our business volumes, and focus continues to be on quality, not market share.

Product Withdrawals

House Purchase

Product Withdrawn from Reservation fee - new business Max 75% LTV Max 90% LTV

2 Year Tracker 27 March 2008 No fee 6.23% 6.43%

2 Year Tracker 27 March 2008 £1,499 5.73% 5.93%

2 Year Fixed 27 March 2008 £1,499 5.58% 5.78%

Non-House Purchase (Remortgage / deal switchers / additional borrowing)

Product Withdrawn from Reservation fee - new business Max 75% LTV Max 90% LTV

2 Year Tracker 27 March 2008 No fee 6.38% 6.58%

2 Year Tracker 27 March 2008 £1,499 5.78% 5.98%

2 Year Fixed 27 March 2008 £1,999 5.58% 5.78%

Reprice of Fixed Rate and Tracker Product Range

House Purchase

Product Effective from Effective from Effective from Effective from Effective from

2 Year Tracker 28 March 2008 £599 6.40% 6.60% 7.00%

Lifetime Tracker 28 March 2008 No fee 6.59% 6.79% N/A

2 Year Fixed Opt A 28 March 2008 £499 5.95% 6.15% 6.65%

2 Year Fixed Opt B 28 March 2008 £999 5.82% 6.02% 6.52%

2 Year Fixed 28 March 2008 No fee 6.35% 6.55% 7.05%

3 Year Fixed 28 March 2008 £499 5.95% 6.15% 6.65%

5 Year Fixed 28 March 2008 £499 5.83% 6.03% 6.43%

10 Year Fixed 28 March 2008 £499 5.88% 6.08% 6.48%

25 Year Fixed 28 March 2008 £599 6.18% 6.38% 6.78%

Non-House Purchase (Remortgage / deal switchers / additional borrowing)

Effective from Effective from Effective from Effective from Effective from Effective from

2 Year Tracker 28 March 2008 £599 6.50% 6.70% 7.10%

Lifetime Tracker 28 March 2008 No fee 6.69% 6.89% N/A

2 Year Fixed Opt A 28 March 2008 £499 6.18% 6.38% 6.88%

2 Year Fixed Opt B 28 March 2008 £999 5.98% 6.18% 6.68%

2 Year Fixed 28 March 2008 No fee 6.58% 6.78% 7.28%

3 Year Fixed 28 March 2008 £499 6.18% 6.38% 6.88%

5 Year Fixed 28 March 2008 £499 5.83% 6.03% 6.43%

10 Year Fixed 28 March 2008 £499 5.88% 6.08% 6.48%

25 Year Fixed 28 March 2008 £599 6.18% 6.38% 6.78%

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trackers tracking what exactly? :blink:

Fionulalululula's heartrate next time she has to go on the Today Programme and say "sound fundamentals"?

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So much for lower interest rates then, when the BOE reduce them again just before the May local elections, will this then be a cue for everyone in the finance sector to raise them again

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We have recently been experiencing large numbers of mortgage applications and with recent competitor changes this is likely to increase. However, as a prudent institution we have to manage our business volumes, and focus continues to be on quality, not market share.

Where exactly are all these NRK borrowers going to get their next fix from?

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trackers tracking what exactly? :blink:

You hit the nail on the head there. Tracking the money market rate for short-term money by the looks of things! :lol:

I think I would be straight onto trading standards and advertising standards if I was affected by those rises.

Also, looks like Nationwide have (ahem) problems.

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All fixed rate product rates increased by 0.20%
Selected tracker products increased by 0.51% and 0.57%

Just like the US. You cannot beat the market. IR will soar and soar and the sheeple will squeal louder and louder.

Merv and Ben think they can cut but the more they cut the higher the rates will go.

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You hit the nail on the head there. Tracking the money market rate for short-term money by the looks of things! :lol:

I think I would be straight onto trading standards and advertising standards if I was affected by those rises.

Also, looks like Nationwide have (ahem) problems.

TBH (broken record time I know) but I've had concerns re their ramping of BTL way past its sell date in all their recent house price reports, way out of line IMHO. Their exposure to BTL & sub prime is not often discussed, but iirc they came to it (BTL/sub prime) very late and far too eager

Edited by Converted Lurker

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I'm pretty sure they did this before the last interest rate cut, only so they could drop them again once the cut was announced.

BOE rate cut in April anyone?

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I'm pretty sure they did this before the last interest rate cut, only so they could drop them again once the cut was announced.

BOE rate cut in April anyone?

Good thinking. :lol:

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I'm pretty sure they did this before the last interest rate cut, only so they could drop them again once the cut was announced.

BOE rate cut in April anyone?

Quite possible. They really think the public are that stupid don't they?

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I'm pretty sure they did this before the last interest rate cut, only so they could drop them again once the cut was announced.

BOE rate cut in April anyone?

Ah, thats what Mervin means by a broadly flat housing market.

He Doesnt mean house prices, he means the mortgage market.

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Quite possible. They really think the public are that stupid don't they?

Merv has hinted strongly about a reduction in April, but has already admitted that

a lower rate affects £/Euro and exports and ultimately (in current conditions)

will not affect mortgage rates.

As more and more OOs come off fixed rates during 2008, the Banks/Building

Societies can squeeze them as much as they like, to the point where a certain

percentage will have no option but to sell/be repossessed.

The lenders no longer care if house prices drop; they just want to build up cash

deposits.

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Merv has hinted strongly about a reduction in April, but has already admitted that

a lower rate affects £/Euro and exports and ultimately (in current conditions)

will not affect mortgage rates.

As more and more OOs come off fixed rates during 2008, the Banks/Building

Societies can squeeze them as much as they like, to the point where a certain

percentage will have no option but to sell/be repossessed.

The lenders no longer care if house prices drop; they just want to build up cash

deposits.

You are of course, right. I am just playing devil's advocate. Personally I think the banks have sown their seeds. Now it's time to harvest the sheeple...!

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Fionulalululula's heartrate next time she has to go on the Today Programme and say "sound fundamentals"?

Browns blood pressure as the election looms?

I would expect it to be a good bit higher than that! :lol:

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Quite possible. They really think the public are that stupid don't they?

Yeah! but if their not happy thay can always remortgage with another lender on better terms........oh, hang on :lol:

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trackers tracking what exactly? :blink:

I think you'll find that the majority of tracker mortgages don't track the BOE's base rate, but the bank concerned's base rate. The last mortgage deal I took out before selling up was a Woolwich lifetime tracker. The documentation clearly stated that it tracked Barclays bank base rate, NOT the BOE's base rate. I queried this point and the woman on the other end of the phone brushed it off saying that the 2 basically stay in line. Not any more they don't, and if I still had that mortgage I could probably have them over a barrell for misselling too.

Edited to add that you should always read the smallprint. Those that didn't will get a shock when they complain about this move.

Edited by Gurgle

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