Nationwide Bank announced today that they were raising their fixed mortgage rates yet again. The current rate for a fixed mortgage is now much higher than it was a year ago. In addition, the bank also announced that they were lowering the maximum amount they are willing to lend on a fixed rate mortgage to $500k, down from $1 million. This may make it difficult for buyers trying to get a fixed mortgage and although government officials are continually asking banks to lower their rates, the opposite has been the norm.Matthew Carter, Nationwide’s divisional director for mortgages, said: ‘These changes will allow us to maintain control of the volume of business (Nationwide) is attracting, while enabling us to continue offering our full range of mortgages to our existing members in a controlled and prudent way.’Melanie Bien, director at the mortgage broker Savills Private Finance, said: “It is now extremely difficult, if not impossible to get on the housing ladder. Most first-time buyers would have been struggling to find the money for a 95 per cent loan-to-value. Now, with most deals at 90 per cent, it means only those with wealthy parents will be able to buy a property.”
Related reading: Fixed Mortgage
Comment on this article