Nationwide issues interest challenge
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.NATIONWIDE building society yesterday challenged other lenders to hold their mortgage rates in the wake of the surprise rise in base rates last week.
The world's biggest building society said it would also join Bradford & Bingley, another mutual lender, in pledging to hold its rates until 1 August.
The challenge was issued as Cheltenham & Gloucester, the mortgages arm of Lloyds TSB, boosted interest rates by 0.25 percentage points. C&G borrowers will now pay 8.95 per cent, a rise of pounds 20.20 a month on a pounds 100,000 loan. Alliance & Leicester also raised rates yesterday from 8.7 to 8.95 per cent.
Nationwide, which offers 8.1 per cent, said it would only charge more if banks raised savings rates, forcing it to follow in order to protect its competitive position. Mortgage rates would then have to rise in line.
C&G increased savings rates on two accounts, its instant transfer account and its 10-day notice account, to 7.5 and 7.25 per cent respectively.
Brian Davis, chief executive of Nationwide, said: "It will be interesting to see if competitors can afford to follow our lead. Nationwide has not increased mortgage rates since September 1997, so we are providing borrowers with practically a full year of rate stability in spite of two base rate rises."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments