Nationwide mortgage customers could face hikes of £1300 a year
April 24, 2008
Many Nationwide mortgage customers could be facing mortgage repayment hikes equating to over £1300 a year as a result of the recent mortgage interest rate hike applied by the building society. Nationwide ha recently announced another price hike, making this the fifth mortgage interest rate hike that the building society has applied since the start of the year – despite two base rate cuts over the course of the last few months.
The effects of the global credit crunch have left many consumers facing difficulties when it comes to getting affordable mortgages, as an increasing number of lenders have hiked up the interest rates on their mortgages as well as tightening lending criteria in order to try and cut back on the financial risks to themselves. With the latest hike from the Nationwide consumers with a two year tracker mortgage for £158,000 will have to pay around £109 extra a month, which equates to over £1300 a year.
The hikes on mortgage rates from both the Nationwide and from other lenders have made it even more difficult for consumers to get the mortgage that they need. One industry official stated: ‘There is now a fatal combination of people who are unable to borrow and banks who are unwilling lend. The freezing of the housing market is only likely to further exacerbate the current fall in house prices. Bank lending is now so restrictive there is no guarantee this will make houses any more affordable, particularly for first time buyers.’
Another industry professional added: ‘Conditions in the mainstream mortgage market are now deteriorating at a frightening speed. Lenders are changing their pricing and/or their criteria at the fastest pace in living memory, and probably ever.’
- Increase in mortgage interest rates despite base rate cut The nation's biggest building society, Nationwide, announced earlier this week that for the second time in the space of a week it was increasing the interest rate on some of its mortgage products. This comes
- Nationwide cuts interest rates for some borrowers Consumers in the UK have been relieved to see that a number of lenders have reduced the interest rates on their mortgage products slightly after swap rates, which are indicative of mortgage interest rates, fell
- Some homeowners could face 40% hikes in repayments A worrying report has shown how some homeowners in the UK who are due to come to the end of special cheap mortgage deals, such as cheap fixed rate mortgages, could face hikes of up
- Lender expects 80% fall in mortgage market According to a recent report from one of the UK's major lenders the mortgage market in the UK could plummet this year, and could end up at just one fifth of the level that it
- Bank of England under pressure to cut rates The Bank of England has found itself facing pressure to cut interest rates again, following reports that house price growth had fallen to its lowest level in twelve years. According to officials from Nationwide house
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