The society said that following the cuts of 0.15 percentage points, new customers will be able to access two-year fixed rates and tracker rates starting from 2.34 per cent.
Existing borrowers will continue to benefit from rates 0.10 of a percentage point lower than new business rates.
The Nationwide is offering the 2.34 per cent two-year fixed rate up to 60 per cent LTV, with the lower rate of 2.24 per cent for existing borrowers. The society is also offering a two-year tracker up to 60 per cent LTV with £900 fee available at the same rates.
The society also has a 2.74 per cent two-year fixed rate up to 75 per cent LTV, with the lower rate of 2.64 per cent for existing members and a two-year tracker available at the same rates.
There is also a new 4.24 per cent two-year fixed rate up to 90 per cent LTV with £900 fee, offered at a rate of 4.14 per cent for existing borrowers.
Nationwide has also announced rates starting from 2.14 per cent at 60 per cent LTV, for mortgage customers looking to fund non-structural energy home improvement through the society’s new green additional borrowing access.
Earlier this month the society launched a further borrowing product exclusively available to customers wanting to improve the energy efficiency of their existing home - green additional borrowing.
Existing Nationwide mortgage customers wanting to fund non-structural, energy efficient home improvements from a list of acceptable measures, now benefit from a 0.50 per cent rate reduction on the society’s existing range of two-year fixed and tracker further advance rates.
REACTIONS
PROVIDER VIEW
Tom Riley, head of mortgage pricing at Nationwide, said: “Nationwide continues to demonstrate that it is open for business by announcing its lowest ever fixed mortgage rates. These latest cuts ensure our popular range of two-year fixed and tracker rate mortgages remain very competitive. The society continues to make significant improvements for customers at all LTVs, not just for those with the largest deposits.”
ADVISER VIEW
David Hollingworth, associate director of communications for London & Country Mortgages, said: “There are a wealth of good fixed products across the board at the moment. There are some products getting below 2 per cent, although those will carry bigger fees. In terms of the lowest, Norwich & Peterborough are offering 1.99 per cent with a comparable fee. However it doesn’t give help with remortgaging costs which Nationwide does. In the intermediary sector ING Direct are offering a product at 2.29 per cent, which comes with a smaller fee and matching fees to Nationwide on the remortgage. So this Nationwide product is up there in the right ball park, but ING is a bit ahead.”
CHARGES
The 2.34 per cent two-year fixed rate up to 60 per cent LTV, and 2.74 per cent two-year fixed rate up to 75 per cent LTV come with a reduced fee of £400 for first time buyers. Remortgage borrowers receive a free standard valuation and the choice of either free standard legals or £250 cashback, and a non-refundable booking fee of £99 is payable on reservation. The 4.24 per cent two-year fixed rate up to 90 per cent LTV comes with a reduced fee of £400 for first time buyers and a non-refundable booking fee of £99 payable on reservation.
VERDICT
There are a lot of good products on the market at the moment, and this latest offering from Nationwide Building Society is right up there with them.
