Nationwide cut mortgage rates

Monday, 7 July 2008 12:00 AM

Nationwide has announced it is to cut rates on its fixed-rate and tracker mortgage deals.

In an attempt to reverse several recent increases, seen across the industry, the lender - the largest building society in the UK - has cut rates by up to 0.27 per cent.

For home purchase Nationwide now offers a two-year fixed rate deal from 6.48 per cent, with £599 fee, and a fee free 6.88 per cent over the same period.

Moreover, a buyer looking to purchase a home can get a two-year tracker deal, again with a fee of £599, can get a rate of 5.98 per cent from the lender.

A new tracker is also available, price slightly lower, at 5.78 per cent, albeit with a £1,499 fee.

There are slightly higher rates for those looking to remortgage or extend existing borrowing.

A two-year fixed rate deal with a £599 fee is available from 6.58 per cent, while the no fee option is at 6.98 per cent.

Finally a two-year tracker (with £599 fee) can be had from 5.98 per cent, and the £1,499 fee version is available from 5.78 per cent.

"These price changes reinforce our message that, despite tougher market conditions, we remain very much open for business," said Matthew Carter, divisional director for mortgages at Nationwide.

"These changes complement existing competitive three year products with reductions to key fixed rate and tracker deals. Additionally, in response to borrower feedback, we have also launched a new two year tracker deal with a lower rate and higher fee."

The Nationwide tracker deals come with the free facility to switch-and-fix onto any appropriate fixed-rate at any time during the life of the deal, without incurring an early repayment charge.

The new rates come into effect from July 9th.

Chris O'Toole

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