Nationwide Building Society has announced an increase in the rates on its fixed rate and tracker mortgages.

Nationwide’s two year fixed rate mortgage with a £1,499 fee and £1,999 fee, two year tracker mortgage with no fee and two year tracker mortgage with a £1,499 fee will be withdrawn. Full details of the new product range are shown below.

The changes announced follow significant increases in the cost of funding, and recent moves by a number of high street lenders who have either increased rates or withdrawn some products or both.

Matthew Carter, Nationwide’s director of mortgages, said: “Nationwide sympathises with anyone who is concerned about the availability of affordable mortgages. We continue to offer our customers a wide range of fixed and variable rate mortgages up to 95% loan to value with, as always, a focus on prudent and responsible lending rather than volume.”

Key Features of the Product Range

* Range of flexible features available on all new mortgages – to overpay, underpay or take a payment holiday
* Interest is calculated on a daily basis on all products
* No Higher Lending Charge or fees for high percentage borrowing
* BMR is guaranteed to be no more than 2% above the Bank of England base rate
* No compulsory insurance
* Valuation fee varies based on purchase price of property and not product chosen
* Valuation fees are non-refundable for home buyers and home movers
* No valuation fees or legal fees for borrowers who are remortgaging

BASE MORTGAGE RATE (BMR – fully flexible mortgage) – effective from 1 March 2008

Loan to Value	Interest Rate
Up to 95%	6.74%

• Available to all borrowers up to 95% LTV
• No early repayment fees
• No reservation fee
• Flexibility:
  • Overpayments, no minimum or maximum
  • Underpayments and draw downs up to limit of overpayment reserve
  • Apply for Flexible Advance, the additional borrowing facility

ALL RATES FOR FIXED RATE PRODUCTS – effective from 28 March 2008

HOUSE PURCHASE (New and existing Nationwide mortgage borrowers)

Product		With reservation fee	No reservation fee	Reservation fee
Two year fixed rate A	75% LTV	5.95%	6.35%	£499
	90% LTV	6.15%	6.55%	£499
	95% LTV	6.65%	7.05%	£499
Two year fixed rate B	75% LTV	5.82%	N/A	£999
	90% LTV	6.02%	N/A	£999
	95% LTV	6.52%	N/A	£999
Three year fixed rate	75% LTV	5.95%	N/A	£499
	90% LTV	6.15%	N/A	£499
	95% LTV	6.65%	N/A	£499
Five year fixed rate	75% LTV	5.83%	N/A	£499
	90% LTV	6.03%	N/A	£499
	95% LTV	6.43%	N/A	£499
10 year fixed rate	75% LTV	5.88%	N/A	£499
	90% LTV	6.08%	N/A	£499
	95% LTV	6.48%	N/A	£499
25 year fixed rate	75% LTV	6.18%	N/A	£599
	90% LTV	6.38%	N/A	£599
	95% LTV	6.78%	N/A	£599

REMORTGAGORS/ SWITCHERS/ FURTHER ADVANCES (New and existing Nationwide mortgage borrowers)

Product		With reservation fee	No reservation fee	Reservation fee
Two year fixed rate A	75% LTV	6.18%	6.58%	£499
	90% LTV	6.38%	6.78%	£499
	95% LTV	6.88%	7.28%	£499
Two year fixed rate B	75% LTV	5.98%	N/A	£999
	90% LTV	6.18%	N/A	£999
	95% LTV	6.68%	N/A	£999
Three year fixed rate	75% LTV	6.18%	N/A	£499
	90% LTV	6.38%	N/A	£499
	95% LTV	6.88%	N/A	£499
Five year fixed rate (remortgage and further advance)	75% LTV	5.83%	N/A	£499
	90% LTV	6.03%	N/A	£499
	95% LTV	6.43%	N/A	£499
Five year fixed rate (switchers only)	75% LTV	N/A	5.83%	N/A
	90% LTV	N/A	6.03%	N/A
	95% LTV	N/A	6.43%	N/A
10 year fixed rate	75% LTV	5.88%	N/A	£499
	90% LTV	6.08%	N/A	£499
	95% LTV	6.48%	N/A	£499
25 year fixed rate	75% LTV	6.18%	N/A	£599
	90% LTV	6.38%	N/A	£599
	95% LTV	6.78%	N/A	£599

FIXED RATE MORTGAGE INFORMATION – correct as at 27 March 2008

• Available to all house purchase borrowers and customers remortgaging up to maximum 95% LTV
• Reservation fee £499/£599/£999. Two year no fee deals also available
• Automatic transfer to BMR at end of fixed rate period
• Track application via text or email update
• Flexibility:
  • Overpayments (no minimum, maximum of £500 per month)
  • Underpayments and draw downs up to limit of overpayment reserve
  • Apply for Flexible Advance or Further Advance, the additional borrowing facility
  • Full flexibility on BMR at end of the fixed rate

Early repayment fees for fixed rate mortgages

For each year of the remaining repayment fee period, a maximum percentage of the outstanding loan is payable as detailed below. Fixed rates allow overpayments of up to £500 per month without the need to pay a repayment fee.

2 year fixed rate mortgage: 1.5%
3 year fixed rate mortgage: 2.0%
5 year fixed rate mortgage: 3.0%
10 year fixed rate mortgage: 3.0%
25 year fixed rate mortgage 3.0% during first 10 years only – then no charges.

ALL RATES FOR TRACKER PRODUCTS – effective from 28 March 2008

HOUSE PURCHASE (New and existing Nationwide mortgage borrowers)

Product		With reservation fee	No reservation fee	Reservation fee
Two year tracker	75% LTV	6.40%	N/A	£599
	90% LTV	6.60%	N/A	£599
	95% LTV	7.00%	N/A	£599
Lifetime tracker	75% LTV	N/A	6.59%	N/A
	90% LTV	N/A	6.79%	N/A

REMORTGAGORS/ SWITCHERS/ FURTHER ADVANCES (New and existing Nationwide mortgage borrowers)

Product		With reservation fee	No reservation fee	Reservation fee
Two year tracker	75% LTV	6.50%	N/A	£599
	90% LTV	6.70%	N/A	£599
	95% LTV	7.10%	N/A	£599
Lifetime tracker	75% LTV	N/A	6.69%	N/A
	90% LTV	N/A	6.89%	N/A

TRACKER MORTGAGE INFORMATION – correct as at 27 March 2008Available to all house purchase borrowers and customers remortgaging up to maximum 95% LTV -and lifetime tracker limited to maximum 90% LTV

• Reservation fee £599
• The Lifetime tracker product comes with no reservation fee as standard
• Automatic transfer to BMR at end of deal period
• Track application via text or email update
• Flexibility:
  • Overpayments (no minimum, maximum of £500 per month)
  • Underpayments and draw downs up to limit of overpayment reserve
  • Apply for Flexible Advance, the additional borrowing facility
  • Full flexibility on BMR at end of the deal

Early repayment fees for tracker rate mortgages

For each year of the remaining repayment fee period, a maximum percentage of the outstanding loan is payable as detailed below. Fixed rates allow overpayments of up to £500 per month without the need to pay a repayment fee.

2 year tracker: 1.5%
Lifetime tracker: 3.0% (first five years of deal only)