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Lender says...

Nationwide has increased the interest rates on a number of its fixed rate products. A two-year fixed rate available up to 75 per cent loan-to-value has increased from 6.25 per cent to 6.55 per cent. There is an arrangement fee of £599.

A product available up to 90 per cent LTV now has a rate of 6.95 per cent, previously available at 6.45 per cent. This product also carries an arrangement fee of £599.

For those wishing to borrow up to 95 per cent LTV the rate has increased from 6.95 per cent to 7.25 per cent.

There is no higher lending charge for high percentage borrowing, however 95 per cent LTV is only available to existing Nationwide borrowers.

Adviser says...

Danny Lovey, proprietor of Essex-based adviser The Mortgage Practitioner, said: "Nationwide's increases in the fixed rates partly reflect the increase in swap rates but also I note they have widened out the differentials between 75 per cent LTV and above across the range.

"For example the two-year fixed rates have gone up 30 basis points under 75 per cent LTV and 50 basis points above which is another blow to any first-time buyers."

Rating: 3/5 stars