Nationwide cut mortgage rates

The Nationwide Building Society has announced reductions to a number of its more popular mortgage rates. With effect from Friday July 18, the Nationwide will lower its two and five year fixed rates and its two year tracker rate. A reduction will also be applied to the popular lifetime tracker.

Both the two and five year fixed rate schemes are available at the same rates of interest, being 6.18% for those wishing to borrow up to 75% of the property value and 6.58% for those wishing to borrow up to 90% of the property value. Both schemes have a £599 reservation fee, which can be added to the loan, and are available for both purchasing a home and for those wishing to remortgage away from their current lender. Nationwide have recognised that fixed reservation fees are disproportionately unfair on those with small mortgages, and so the two year fixed rate is available with no reservation fee in exchange for an increase of 0.4% in the interest rate charged. Early repayment penalties will be applied for redemption or reduction in the amount owing during the fixed rate period.

The two year tracker product has in interest rate of 5.68% for those wishing to borrow up to 75% of the property value and 6.08% for those wishing to borrow up to 90% of the property value. The reservation fee is £1,499, and again the product is available for both purchases and remortgages, with early repayment penalties payable if the mortgage is reduced or redeemed within the first two years.

The lifetime tracker rate is priced at 5.98% for loans up to 75% and 6.38% for loans up to 90% and has a reservation fee of £599. Like the fixed rates and the two year tracker, the lifetime tracker is available for both buying a new home and remortgaging, but unlike the other schemes, the early repayment penalties apply for the first five years of the mortgage.

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