Nationwide BS  

Nationwide increases savings and mortgage rates

Nationwide increases savings and mortgage rates

Nationwide Building Society has put up its mortgage and savings rates following the Bank of England Bank rate increase last week. 

In response to the bank rate increase of 0.25 per cent, the building society will implement its rate changes as of 31 August for savings accounts and 1 September for mortgages.

Mortgage customers will see tracker rates increase by 0.25 per cent and the society’s base mortgage rate and standard mortgage rate increase to 2.75 per cent and 4.24 per cent respectively. 

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The building society reported that 20,000 tracker rate customers will not see an increase as their accounts have already reached their minimum floor, and will not see an increase until the base rate passes above the offer-specified rate. 

The help to buy Isa will be increased to 2.5 per cent, the flex Isa to 1.1 per cent, flex online saver to 0.60 per cent, smart saver to 1 per cent and the loyalty saver and loyalty Isa will no pay up to 1.10 per cent. 

Nationwide reported that its higher rates last year equated to £435m of member financial benefit.

Chris Rhodes, executive director of products and propositions at Nationwide Building Society, said the sustained low interest rate environment and competition in our core markets would maintain the pressure on margins but pledged to keep putting members first.

He added: "Despite this pressure, the society is opting to put mutuality ahead of margin, so, while £41bn of society mortgage balances will see an increase as a result of the Bank rate change, more than £70bn of savings balances will also receive an increase. 

"Following these changes, we will continue to offer some of the most competitive savings and mortgage rates on the high street."

The society reported that variable rates from their specialist lending subsidiaries linked to the Bank rate will also increase by 0.25 per cent from 1 September - including those with The Mortgage Works. 

Nationwide offers a SavingsWatch service which texts or emails members when the society makes a rate change that affects them, or when a new account is launched. 

rachel.addison@ft.com