MortgagesSep 6 2016

Nationwide slashes five-year fixed rates

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Nationwide slashes five-year fixed rates

Nationwide is reducing select fixed rates by up to 0.20 per cent with a five-year fixed rate deal starting at less than 2 per cent for the first time.

The five-year fixed rate range will 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 also making significant rate reductions to a wide selection of its three and 10-year fixed rate products, with the three-year fixed rate product starting at 1.69 per cent with a £999 fee and 1.99 per cent with no fee.

All standard mortgage valuations are now fee-free, while first-time buyers receive £500 cashback to help with the cost of moving.

Henry Jordan, head of mortgages at Nationwide, 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.”

Kevin Dunn, senior partner and mortgage and protection adviser at Furnley House, said: “It is a really good rate.

“Interest rates are at an all-time low so it is important to be careful with banks and building societies offering these fabulous rates and ask the question whether they’ll be able to keep up with customer demand.

“These five-year fixed rates are great if you’re settled in your situation and you’re unlikely to be moving house soon.”