You are here: Home - News -

Nationwide reveals base rate plans as rivals stay quiet

by:
  • 01/11/2017
  • 0
Nationwide reveals base rate plans as rivals stay quiet
Nationwide has confirmed it will push up variable mortgage rates if the Bank of England raises the base rate tomorrow – as other lenders refuse to reveal how they will react to the expected change in monetary policy.

For the first time, Britain’s biggest building society decided to pre-empt an increase in core interest rates.

Markets are pricing in a 90% chance of the Bank of England raising the base rate from 0.25% to 0.5% in November – it will be the first time in a decade interest rates have increased.

A spokeswoman for Nationwide told Mortgage Solutions it wanted to give its customers certainty for the future, amid growing speculation that rates would rise.

The lender has confirmed that variable rate mortgages, including its Standard Variable Rate (SVR) will go up by 0.25% from December 1, if the Bank of England moves as expected and raises the base rate.

As homeowners race to lock into deals, Nationwide has also cut fixed rates for existing customers by up to 0.5%.

Chris Rhodes, executive director of products and propositions, said: “With a Bank Rate rise anticipated, we have decided to take early steps to offer improved mortgage products, while at the same time announcing the impact on members’ mortgages and savings rates.”

 

Wait and see

Other lenders opted to stay quiet ahead of the Bank of England’s November interest rate decision.

A spokeswoman for Lloyds and Halifax said a base rate rise would form an ongoing review of mortgage rates.

HSBC, Aldermore and Yorkshire Building Society declined to reveal how a change in base rate would affect their product rates.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Energy efficiency could be key to Stamp Duty cuts – Goldsmith

We are just weeks away from the next Budget, which (as tradition dictates) means the industry is girding its loins...

Close