Nationwide, the high street bank, has announced that it will take steps to offer "the best possible deals", to its customers with the unveiling of new rates for its mortgage range.

The firm has announced that from June 17th 2008, it will be offering a two-year fixed rate deal from 6.55 per cent for house purchase, as well as a three-year fixed rate from 6.35 per cent.

Nationwide is also making its three-year tracker deal available at 5.74 per cent, while its lifetime tracker is to be available from 6.34 per cent.

According to Matthew Carter, divisional director for mortgages at Nationwide, "continued large rises in money market rates" had made it necessary for it to raise its mortgage rates.

He said: "While markets remain volatile we can expect to see frequent changes to fixed-rate mortgages across the industry."

Last month, Darren Cook, head of mortgages for Moneyfacts.co.uk, mentioned, that perks within the mortgage markets are "few and far between" in the present economic climate.

A few months earlier the market was “very competitive”, but now people need to go out and find a bank that will lend to them, the expert noted.