Nationwide cuts mortgage interest rates

Published: May 13, 2008

Nationwide has announced that it will reduce the mortgage interest rates on some of its deals.

The building society is cutting the rates on many of its fixed-rate mortgages and borrowers will be hoping that other lenders follow suit.

A two-year fixed-rate mortgage, which previously came with a rate of 6.10 per cent, is now available at 5.95 per cent, although the fee has increased by £100.

In addition, a two-year deal which was previously fixed at 6.5 per cent has had its mortgage interest rates cut to 6.35 per cent.

A five-year fixed-rate mortgage which previously had a rate of 6.15 per cent now has a rate of 5.85 per cent.

A number of remortgaging deals have also had their rates reduced.

"Recent reductions in money market swap rates mean we are able to reduce the rates on our two-year and five-year fixed-rate mortgages," said Matthew Carter from Nationwide.

"This is good news for home-buyers, re-mortgage customers and borrowers who are coming to the end of their existing deals.

"Nationwide continues to offer a range of mortgages up to 95 per cent loan-to-value, including two recently launched deals which offer first-time buyers a £300 discount on the reservation fee," he added.