Nationwide Cuts Selected Two and Five Year Fixed and 2 Year Tracker Rate Mortgages

From Thursday 27 April, Nationwide Building Society is cutting rates on selected 2 and 5 year fixed and 2 year tracker rate mortgage products by up to 0.10%.

Rates in the 2 year fixed rate product range available up to 75, 80, 85 and 90 per cent loan to value (LTV) have been reduced by up to 0.10%, with the 75 per cent 2 year fixed rate product starting at 1.34% with a £999 fee and 1.74% with no fee. For those with a 10 per cent deposit, predominantly first time buyers, rates have been reduced to 2.19% with a £999 fee and 2.59% with no fee, the lowest rates in this range ever offered by Nationwide.

The 5 year fixed rate product with a 40 per cent deposit now starts at 1.84% with a £999 fee and 2.04% with no fee – also a historic low for the Society.

Selected 2 year tracker rates have also been reduced, with those at up to 85 per cent LTV starting at 1.54% with a £999 fee and 1.94% with no fee and those at up to 90 per cent LTV starting at 2.19% and 2.59% respectively.

All Nationwide tracker mortgage products currently have no Early Redemption Charges (ERCs). Existing mortgage customers benefit from a 0.10% discount on the new customer rate.

The Society also offers a range of additional benefits for both first time buyers and home movers. All standard mortgage valuations are fee-free, while first time buyers receive a £500 cashback to help with the cost of moving. Remortgage customers are able to benefit from a free standard valuation and the choice between free standard legal work and £250 cashback.

Henry Jordan, Nationwide's Director of Mortgages, said: “We are making further reductions to selected rates across our fixed and tracker rate ranges, with a number of Nationwide mortgage rates reaching historic lows. As well as offering a wide range of competitive mortgage rates, Nationwide also offers additional benefits to first time buyers, home movers and those remortgaging to the Society.”

-Ends-

Contact:

Jill Parsons, 01793 655064, jill.parsons@nationwide.co.uk

Deborah Isaac-Taylor, 01793 655354, deborah.isaac-taylor@nationwide.co.uk

Notes to Editors:

Key features of Nationwide's fixed and tracker mortgage product range for new applications

1. Flexibility:

Overpayments (maximum of 10% of the initial amount borrowed per annum where an ERC applies to the product. Where a product is not subject to an ERC, there is no maximum overpayment allowance).

Apply for a Further Advance, the additional borrowing facility.

1. Free Standard Valuation:

All standard valuations are fee free. Cashback is payable one month after completion of the mortgage, with the exception of the following:

For Flex customers applying through the introduced channel the cashback is payable up to three months after completion of the mortgage

1. Maximum LTV:

95% LTV mortgages are available to:

• First-time buyers and home movers.
• Existing Nationwide mortgage borrowers switching at the end of their current deal or moving home.
• Save to Buy customers.

Maximum 75% LTV on new build flats and 85% LTV on new build houses

1. Base Mortgage Rate

Any mortgage products reserved on or before 29 April 2009 will revert to the Base Mortgage Rate (BMR). If the borrower chooses to switch to a new Nationwide mortgage product, the new product will currently revert onto our Standard Mortgage Rate (SMR).

Both are variable rates which we may vary in accordance with our mortgage terms and conditions. However, the BMR is guaranteed to be no more than 2% above the Bank of England base rate, whilst the SMR has no upper limit or cap. If the borrower chooses to switch to a new product from a BMR, it is not possible to switch back to the BMR at a later date.

All mortgages reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility. Any mortgages reserved after this date will no longer include these facilities.

If the borrower is currently letting their property they will be unable to switch to a new mortgage deal and their mortgage will automatically revert to the Nationwide variable rate as stated in their mortgage offer.

1. Early repayment charges (ERCs)

If you repay a mortgage early or make an overpayment of more than your overpayment allowance, you may need to pay an Early Repayment Charge. For Nationwide mortgages reserved after 8 October 2014, you would need to pay a percentage of the outstanding loan amount as follows:

ERCs don't currently apply to our Tracker Rate mortgages.

*Flexclusive mortgages are available to Nationwide main current account holders who:

1. Hold a FlexOne account and be aged 18 or over, or hold a FlexAccount with a Visa debit card (not cash card or cash card+) and have:

Been paying in £750+ a month for the last 3 months (excluding internal transfers);

Or

Completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team in the last 4 months; or

1. Hold a FlexDirect or FlexPlus account

About Nationwide Building Society:

Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 17,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.