Rates on Nationwide’s two-year trackers at 70%, 75%, 85% and 90% loan-to-value (LTV) have been increased by 0.15 bps with rates at 80% LTV rising by 0.10 bps.
However, Nationwide said that tracker rates would never go below 0%. It explained that if the Bank of England base rate is 0% or less during the tracker period, the payable rate will be 0% plus the agreed set percentage above the BBR.
Earlier this month, both Halifax and Santander increased rates on tracker deals by 0.20%, while Santander withdrew selected trackers.
It is thought that lenders have been increasing tracker rates to protect margins, with the market unsure of which way rates could go next.
A spokeswoman for Nationwide, said: “Nationwide has adjusted its tracker mortgage rates in line with the rest of the market. The Society continues to offer tracker rates that are among the most competitive available, with additional features such as a £500 cashback for first time buyers, free standard valuations and no ERCs.”
