Nationwide increases fixed and switch rates
Nationwide Building Society has revealed that it is increasing fixed rates for existing customers and select switch rates.
On fixed products up to 60% LTV the lender is increasing rates by up to 0.15%.
Meanwhile, on selected switcher rates below 90% LTV, the building society is increasing rates by up to 0.20%.
Furthermore, Nationwide has restricted affordability for mortgage applicants who have been furloughed.
The restriction also applies to individuals on zero hour contracts, and it will now not accept bonus, overtime or commission income.
According to the building society, it will still consider applications from furloughed staff, however, it will assess their affordability based on the individual earning 80% of their annual income, up to £2,500 a month or £30,000 a year.
The society stresses that for pipeline cases advisers must contact the firm to request a material change.
If by using the lower income a borrower fails affordability, Nationwide said they must choose to reduce the loan amount, extend their term or pause their application.
A spokesperson for Nationwide Building Society said: “Although Nationwide continues to process as many applications as possible, as a responsible lender it is important that we ensure that members can afford their mortgage payments during these uncertain times.
“As a result, we are temporarily making a small number of changes, including removing bonus, overtime and commission as income streams on new mortgage applications, but we will keep this position under regular review.
“Nationwide has also recently announced enhanced measures to support existing applications, including three-month mortgage offer extensions when the existing offer is within 30 days of expiry as well as alternative valuation methods, such as automated valuation model.”