Complimentary Mortgage Guidance: Starting tomorrow, Mutual will increase the fixed rate costs.

Nationwide Building Society is increasing the interest rates on its fixed-rate mortgages by a maximum of 0.2 percentage points for both new borrowers and current clients, as reported by Jo Thornhill. Starting tomorrow (29 February), the remortgage fixed rates for two, three, and five-year terms will increase by a maximum of 0.15 percentage points. The costs of five-year deals with a loan-to-value ratio of 60% will begin at 4.29% with a charge of £999. Meanwhile, two-year deals would start at 4.69%.

Home purchase rates, including those for first-time buyers, are expected to increase by a maximum of 0.2 percentage points. The minimum interest rate for a five-year fixed-rate purchase will be 4.19%, and borrowers must have a cash deposit of at least 40%. Additionally, there will be a £999 fee. The starting interest rates for three-year agreements are 4.54%, while for two-year agreements they are 4.64%. Customers who apply for a loan through a broker or directly to the lender are subject to increased interest rates.

Nationwide has just launched a selection of remortgage options for prospective clients who have a mere 5% ownership stake in their house, which is comparable to a 95% Loan-to-value ratio. While the lender has previously provided these offers to first-time buyers and home purchasers, this is the first instance since 2008 that it is offering refinance packages at a 95% loan-to-value ratio to individuals looking to remortgage their homes.

The two-year fixed rate at 95% loan-to-value (LTV) is offered for 5.84% with a £999 cost. Alternatively, there is an option with no arrangement fee at a slightly higher rate of 6.14%. The three-year agreement is priced at an interest rate of 5.7% (or 5.88% without any additional fees). Alternatively, the five-year deal is priced at an interest rate of 5.34% (or 5.49% without any additional fees). Nationwide is also raising specific fixed rates on its product transfer offers and rates for additional borrowing, only for current customers. The increases in interest rates impact borrowers who have a minimum of 25% equity in their property.