Nationwide Building Society increases mortgage rates again

The Nationwide Building Society has now increased a number of their mortgage rates for a second time in just two weeks. The mortgage lender has raised some of their tracker and fixed rate mortgages by 0.2% and 0.5%. This will come as a shock to customers who borrow from the company; Nationwide has blamed this second rise in just two-week on, cost of borrowing through the wholesale money markets. The building society has also blamed the rise because a number of their competitors have raised their rates.

Nationwide customers are being warned that because the market is very volatile at the moment, there will be frequent changes to mortgage rates, and there are no plans that this will stop anytime soon. It seems that mortgage borrowers are in for a bumpy ride, we are now in some choppy waters and things are set to get a lot rougher. This will be make or break for a number of people who are now at their limit with how much they are able to afford, on their monthly mortgage payments. We are now entering a stage where we will be seeing increases in house repossessions, as families struggle due to mortgage rate rises along with increased household bills.

If the current credit crisis gets even worse then I fear that people will blame the government, Gordon Brown will have to do something soon to turn the state of the UK economy around, otherwise he does not stand a chance of getting in again at the next General Election.

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