Nationwide Building Society has announced the launch of a five year tracker mortgage which will be available from today (9 November).
Rates for the 60 per cent loan-to-value product start at 1.89 per cent with a £999 fee.
The building society has also launched a 70 per cent loan-to-value tracker mortgage at 2.09 per cent with a £999 fee and a 75 per cent product loan-to-value at 2.19 per cent with a £999 fee.
According to Nationwide, the launch is aimed at increasing choice and flexibility across the mortgage range.
All Nationwide tracker mortgage products currently have no early redemption charges, and existing mortgage customers benefit from a 0.10 per cent discount on the new customer rate, as well as a £250 cashback for mortgage customers switching to a new deal or moving home.
In October this year, Nationwide increased the maximum loan-to-value for customers remortgaging from other lenders to the society.
Henry Jordan, Nationwide’s head of mortgages, said: “We are extending the choice of Nationwide tracker mortgages to include a five year option, responding to customer demand and a growing market for more flexible products.
"This will be particularly useful for those with larger deposits looking for a product that provides maximum flexibility with no limit on overpayments.
“With the combination of competitive rates and access to additional benefits, Nationwide will continue to offer mortgage deals that are amongst the best on the high street.”
Mike Pendergast, a financial adviser with Cheshire-based Zen Financial Services, said: "Decent interest rates, however it would have been nice to have a £0 fee option with a slightly higher interest rate.
"Nationwide products are usually competitive. I have personally had issues with their service levels as they advise they are currently consolidating sales offices, hence me getting emails from three different offices telling me three different things regarding the same case recently. If they can sort these issues out they are a competitive mortgage lender."
ruth.gillbe@ft.com
