Nationwide raises tracker rates says National Homebuyers

Nationwide, the UK's largest building society, has increased its mortgage rates, potentially leading to a surge in people seeking a fast property sale.

[ClickPress, Tue Feb 05 2008] The firm has made the move despite no movement to the base rate of interest and it follows a string of other lenders which have done the same.

It means that more potential buyers are going to be deterred from entering the market, spelling bad news for homeowners, many of whom will now be desperately trying to secure a fast property sale.

Nationwide has increased its tracker rate by between 0.05 per cent and 0.15 per cent for all new borrowers.

The building society has blamed the global credit crunch for the movement, which could have a devastating impact on the UK housing market.

"The costs of funding from both the wholesale and retail markets have increased, and we have found it necessary to follow other lenders who have recently increased their rates," Nationwide mortgage director Matthew Carter told the BBC.

"We have had to reflect these increased costs in the pricing of our tracker mortgages," he added.

Fast property sale expert Julian King of National Homebuyers comments, "Lenders have to raise rates, but this will leave thousands with financial difficulties.

"Options exist for the homeowner to avoid having their property repossessed, but we encourage those in financial difficulty to assess the market and use a reputable firm".

Mr King is a director of National Homebuyers, the UK's leading mortage rescue scheme provider, either arranging a quick property purchase or a Sell and Rent Back agreement where the homeowner can release equity in their property and rent their home back.

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