Nationwide has increased the rates on their whole range of tracker mortgages as they prepare for an influx of consumers looking to secure such a deal.
The building society have inflated interest on all their tracker deals by between 0.05% and 0.15%, effective from the 23rd of January. They join a long list of other providers who have increased their rates because of higher borrowing costs.
Despite this, the rates on Nationwide fixed rate mortgages remain frozen for the time being.
Matthew Carter, divisional manager of mortgages for the group commented, "The costs of funding remain high and we have found it necessary to follow other lenders who have recently increased their rates."
He added, "The costs of funding from both the wholesale and retail markets have increased, and as a result we have had to reflect these increased costs in the pricing of our tracker mortgages."
Tracker mortgages are the hot deal at the moment with the base rate expected to fall throughout 2008.