Nationwide Building Society has introduced a new £360 administration fee on certain mortgage products, adding to the financial burden on borrowers. The charge applies to new fixed-rate deals, including those for home purchases and remortgaging. Virgin Money has also increased rates on some of its mortgage offerings, reflecting a broader trend of rising costs in the housing market.
The £360 fee, which Nationwide calls a 'product administration fee', is payable on completion of the mortgage. It is non-refundable and applies to selected fixed-rate products. Borrowers are advised to factor this additional cost into their calculations when comparing deals.
Industry experts say the moves are driven by rising swap rates, which influence mortgage pricing. The Bank of England's base rate remains at 5.25%, but markets anticipate potential cuts later this year. However, lenders are adjusting rates in response to current economic conditions.
Mortgage brokers warn that borrowers should act quickly to secure deals before further increases. They recommend comparing total costs, including fees, rather than focusing solely on interest rates. The changes come as many homeowners face higher repayments when rolling off cheaper fixed-rate deals.
