One of the UK’s largest lenders, Nationwide has become the latest company to announce withdrawl of mortgage products and an increase in rates. The move does little to quell the increasing concern and financial stress suffered by thousands of homeowners looking to change their mortgages this year.

The UK’s second largest lender has increased its fixed-rate mortgages by 0.2%, and its tracker mortgages by 0.51% or 0.57%. It is also withdrawing its two year fixed rate mortgage with a £1,499 fee and £1,999 fee, two year tracker mortgage with no fee and two year tracker mortgage with a £1,499 fee.

The company says the move follows significant increases in the cost of funding, and recent moves by a number of high street lenders who have either increased rates or withdrawn some products or both.

"Yet another door has slammed shut in the face of homeowners with one of the UK's biggest lenders giving the consumer the cold shoulder,” says Louise Cuming, Head of Mortgages at moneysupermarket.com. “This is the culmination of a dire week for borrowers, with a raft of smaller lenders also moving the goalposts for their customers by withdrawing product ranges and upping rates.”

Cuming advises people not to panic: “People heading towards the end of their deals, who might be starting to panic, should stay calm and shop around early. Look around five months before the end of your term as there are some good value deals on the market, particularly for those with a good credit record and substantial equity in their homes."