Nationwide to raise BMR in August

Mortgage lender Nationwide has announced that it will increase its base mortgage rate (BMR) from August 1st.

The move comes as homebuyers struggle with the affect of yet another interest rate rise from the Bank of England's Monetary Policy Committee last week.

According to the building society, the BMR will increase by 0.25 per cent - from 6.99 per cent to 7.24 per cent.

This, it claims, will be 0.50 per cent lower than other high street lenders who will adapt to fall in line with the base rate.

Matthew Carter, divisional director of mortgages and savings, said: "Nationwide is committed to providing long-term good value to borrowers and savers through accounts which are simple, straightforward and easy to understand.

"Our members continue to benefit from some of the best mortgage and savings rates available."

Last week's rises have been a short, sharp shock for homeowners - despite the fact that interest rates are historically relatively low.

Some have seen their monthly repayments rise by as much as £300, leaving them struggling to keep up and at risk of going into debt.

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