Abbey and Nationwide mortgage rates increased for trackers

Date:Tuesday 4th November 2008

Abbey and Nationwide mortgage rates have been upped for tracker products, it has been reported.

MoneyMarketing said that the two lenders raised their rates for tracker mortgages.

Nationwide has increased its tracker mortgage rates by up to 0.4 per cent while Abbey has upped its by 0.5 per cent.

Abbey put it down to a "response to competitor moves", adding that its 85 per cent tracker has now disappeared.

The publication reported a comment from Ray Boulger of John Charcol mortgage brokers.

He called the moves "worrying", adding that they make it more difficult for people seeking new mortgages and for borrowers to benefit from the Bank of England's cuts in the base rate.

MoneyMarketing also reported Danny Lovey of The Mortgage Practitioner, who said that Abbey had the resources to lend "but does not want all of the business".

Nationwide recently announced cuts to some of its fixed-rate deals, while Abbey reduced its own fixed-rate deals by up to 0.35 per cent.