Nationwide & Britannia jink mortgage offers

The Nationwide and Britannia building societies – respectively the first and second largest in the country – have reshaped their mortgage offerings.

With effect from Friday, Nationwide has announced it is to reduce the rates on its two, three and five-year fixed-rate and two-year and lifetime tracker mortgages by as much as 0.46 per cent.

Among the biggest changes, the two-year fixed rate deal, with a 90 per cent loan-to-value (LTV) will see a drop from 6.88 to 6.58 per cent (with a £599 fee), while a new fee free version will be available for 6.98 per cent.

A three-year deal with a 90 per cent LTV will fall from 6.75 per cent 6.63, with a fee of £599, falling to £299 for first-time buyers.

Rates on the ten and 25-tear fixed-rate deals remain unchanged.

"As a building society we always aim to offer our members the best possible deals," said Matthew Carter, divisional director for mortgages at Nationwide.

"For the second time this month, we are in a position to reduce the rates on mortgages, offering some of the most competitive rates in the market."

Across the way at Britannia, the lender has announced it is to add a new five-year option to its fixed-rate mortgage offer.

The deal will have a rate of 5.99 per cent on LTVs up to 75 per cent, or 6.39 per cent on LTVs up to 90 per cent - both with an arrangement fee of £999.

Again the new deal will be available from July 18th.

Britannia's two existing five-year fixed-rate options are also still available.

One has an arrangement fee of £499, while the other is fee free - both options offer a selection of rates based on the loan to value.

"All of our mortgage packages offer a range of options, based on the borrower's circumstances," said Tim Franklin, managing director of member business at Britannia.

"This new option gives borrowers the reassurance that they are getting a competitive rate, with the peace of mind that their monthly payments will remain the same for the next five years."

Chris O'Toole