Nationwide is raising its mortgage rate by 0.45% just days after it announced it was rewarding customers with a £100 bonus after record profits.
The building society imposed strict criteria on who could get the bonus of a current account open since March, £100 in savings accounts or £100 outstanding on a Nationwide mortgage.
Critics said those conditions meant only around a quarter of Nationwide customers qualified for the bonus, which stemmed from the building society posting record profits of £2.2bn in the year to March.
Today, it said it is raising rates on selected fixed and tracker mortgages from tomorrow due to the recent inflation numbers and the likelihood that the Bank of England will raise interest rates by more than expected as a result.
“In the current economic environment swap rates have continued to fluctuate and, more recently, increase, leading to rate rises across the market. This change will ensure our mortgage rates remain sustainable,” it told Reuters.
Another seven smaller lenders had also pulled or repriced products this week, the report added.