Nationwide ups New Customer Rates to catch up with Backlog

01 September 2012 Categories: News

Nationwide ups New Customer Rates to catch up with Backlog

The Nationwide Building Society informed brokers yesterday that fixed rates for new customers had been increased overnight by 0.3% while tracker rates saw an increase of 0.2%. Similarly the rates for existing customers wanting to borrow additional amounts or move home also increased but remain 0.1% below those for new customers.

The increases are thought to be related to the increased mortgage application processing period the Nationwide has been offering over the last 3 months, as business has been booming beyond expectations. The normal service agreement for the Nationwide states a 14 day processing period however this rose to 17 days in July, and now there is a 20 day wait from submitting an application to receiving an offer.

Aaron Strutt, the Product and Communications Manager for Trinity Financial, yesterday explained the sudden increases by saying “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.”