The mutual has today made a series of changes to its mortgage deals which means a new member moving home with a 5% deposit opting for a two-year or three-year fix and £0 fees can secure a rate of 7.09%.

This is up 40 basis points from the 6.69% launched just two weeks ago on 29 June.

However, for this group of buyers, if they opt to pay a £999 fee, the equivalent rate comes in at 6.84%.

Meanwhile first-time buyers see higher rates with the £0 fees on a two-year or three-year fix (5% deposit) paying a rate of 7.14%. Again, these buyers opting to pay a £999 fee would see a rate of 6.89% on the two-year deal and 6.79% on the three-year deal.

For those looking to lock in a mortgage for a longer period, Nationwide’s five-year deals are priced upwards of 6%.

As an example, at the end of June, a five-year fix with a £999 fee offered a rate of 5.94%. Today that same deal stands at 6.19%, a 25 basis point difference.

On the new business side when it comes to 10-year fixes, the increases are more modest, with a 10 basis point difference. Here a 95% loan to value mortgage (5% deposit) with a £0 fee was priced at 6.19% but it now 6.29%. Those opting to pay the £999 fee see the rate rise from 6.04% to 6.14%.

According to Moneyfactscompare, the last time two-year fixed rate deals breached 7% was back in June 2008 when the average rate stood at 7.08% which it said was a record high based on its data which dates back to June 2007.

However, Nationwide isn’t currently the only lender with rates in excess of 7% on its two-year fixed deals.

Moneyfacts lists Barclays, Yorkshire and Skipton, Bank of Ireland and Accord as offering two-year fixed deals (95% LTV) above 7%. Meanwhile Kensington is recorded as offering 8.29% (£1,299 fee) and 8.89% on the £0 fee option.

Meanwhile today the average rate on a two-year fixed deal across all LTVs stands at 6.75% while on the five-year range, rates stand at an average 6.27%

Rachel Springall, finance expert at Moneyfactscompare, said: “While interest rates are a convenient measure to compare deals, it is important that borrowers consider a mortgage based on the overall true cost, particularly to save on any upfront fees. Seeking out independent financial advice is a good idea to navigate the mortgage maze.”