Nationwide has informed brokers today that it has increased its new customer fixed rates by 0.3 per cent and tracker rates by 0.2 per cent.
The building society revealed earlier today that for existing customers moving home or taking further borrowing will be priced 0.10 per cent below the corresponding new customer rates.
NewBuy rates for new customers will not be increased, but NewBuy rates for existing customers moving home will be reduced by 0.10 per cent.
Trinity Financial’s Product and Communications Manager Aaron Strutt says the rate rise may be related to delays in processing mortgage applications. Nationwide’s service level agreement includes a processing period of 14 days which had risen to 17 days in July. Nationwide’s applicaiton to offer time currently stands at an average of 20 days while the average documentation assessment time is 10 working days.
He says:“It’s unusual at the moment for lenders to increase their rates but when the average time from application to offering is 20 days, you can understand why they’ve done it. Normally lenders in this position take a few weeks to clear the backlog.
“Over the last couple of months, they have been keen to get more business in and it has caught up with them now. Like a lot of the other lenders, they will raise their rates and in couple of weeks, they will lower them again when they’ve caught up with business.”