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FIXED DEAL NATIONWIDE BUILDING SOCIETY Type: Two-year fixed rate deal and selected trackers

Description: Nationwide has cut the rates on some of its two-year fixed deals for the 60 per cent LTV category and raised rates on selected two and three-year tracker products. The two-year deal with a £599 arrangement fee has been lowered to 5.59 per cent while the fee-free rate has been cut to 5.99 per cent. The two-year deal with £999 arrangement fee has also been lowered to 5.49 per cent. Remortgage and further advance deals with fees of £599 and switches at £299 fees have been cut to 5.59 per cent. Rates on two and three-year tracker deals now start from a low of 5.98 per cent to as high as 6.18 per cent, depending on arrangement fee, type and LTV.

Conditions: Nationwide's fixed rate and tracker deals may require applicants to pay a reservation fee. These can be paid upfront or added to the loan fee. Throughout the deal period a maximum percentage of the outstanding loan is payable. This is set at 2 per cent for two year fixed deals and 1.5 per cent for both two and three-year trackers. Fixed and tracker rates allow overpayments of up to £500 a month free from early repayment charges.

Verdict: Within a matter of weeks Nationwide has changed its mortgage rates again. These new rates are still quite competitive and in line with the rest of the market, although there are slightly lower deals available. The cut in fixed rates are clearly aimed at the lower risk market as they have been limited to the 60 per cent LTV category. This may attract existing home owners coming to the end of their fixed terms.

Contact: www.nationwide.co.uk

Rating: 4/5 stars