Nationwide makes further cuts across its fixed mortgage range

From tomorrow, Britain’s biggest customer-owned lender will reduce selected fixed rates by up to 0.20 per cent, with 5 year fixed rate deals starting at less than 2 per cent for the first time.

The 5 year fixed rate range will now start at 1.99 per cent with a £999 fee and 2.19 per cent with no fee.

In addition, options for customers with a 5 per cent deposit will be enhanced through the introduction of new tracker rate products. New 95 per cent loan to value (LTV) products will be added to the tracker range, with introductory rates of 3.59 per cent with a £999 fee and 3.99 per cent with no fee respectively and with no Early Redemption Charges (ERCs).

The society is also making significant rate reductions to a wide selection of its 3 and 10 year fixed rate products, with the 3 year fixed rate products starting at 1.69 per cent with a £999 fee and 1.99 per cent with no fee.

For those looking for long-term payment security, the 10 year fixed rate products are further reduced to set a new lowest-ever rate from the Society, from 2.69 per cent with a £999 fee and 2.79 per cent with no fee for the 60 per cent LTV deal.

The new deals are complemented by the Society’s range of additional benefits for both first time buyers and home movers. All standard mortgage valuations are now fee-free, while first time buyers receive a £500 cashback to help with the cost of moving. Nationwide Flex main current account holders who are taking out a Nationwide mortgage are also eligible for an additional £250 cashback.

Existing Nationwide mortgage customers receive a £250 cashback when they take a new mortgage deal, in addition to continuing to benefit from a 0.10% discount on new customer rates.

Henry Jordan, Nationwide’s head of mortgages, said: “In addition to our recent reductions to fixed rate mortgage deals, we are making further cuts to fixed rate products for those looking for competitive rates and payment security. For those with small deposits looking for flexibility, including first time buyers, we are also introducing a new tracker mortgage product at 95 per cent LTV at less than 4 per cent. The Society continues to offer tracker rates that are amongst the most competitive available, with additional features such as a £500 cashback for first time buyers, free standard valuations and no ERCs.

“With the combination of competitive rates and access to additional benefits for both new and existing customers, Nationwide will continue to offer deals that are amongst the best on the high street.”

For new customers, from 6 September, rates for some tracker deals will see an increase, with the 2 year tracker products up by 0.05 per cent at 1.34 per cent with a £999 fee and 1.74 per cent with no fee.