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Nationwide cuts two-year tracker mortgage rates

Nationwide cuts two-year tracker mortgage rates

Nationwide is cutting rates on selected two-year tracker mortgages by up to 0.10 per cent.

From today (1 December) rates for the 60 per cent loan-to-value (LTV) two-year tracker product will start at 1.24 per cent with a £999 fee and 1.64 per cent with no fee. 

In addition, there is a 70 per cent LTV and a 75 per cent LTV tracker products, both at 1.34 per cent incurring a £999 fee and 1.74 per cent with no fee. 

The 80 per cent LTV and 85 per cent tracker mortgages have also been reduced, now starting at 1.54 per cent and 1.64 per cent respectively, both with a £999 fee. 

All of Nationwide’s tracker mortgages have no early redemption fees.

Customers who already have a mortgage with the lender will benefit from a 0.1 per cent discount on the new customer rate, along with £250 cashback for mortgage customers moving home or switching to a new deal. 

The rate reductions follow the recent launch of the lender’s new five-year tracker mortgages.

Nationwide stated it is striving to increase choice and flexibility across its product range.

As such, it has also introduced 95 per cent LTV tracker mortgages and increased the maximum loan-to-value for client remortgages from other lenders on a like-for-like basis from 85 per cent to 90 per cent. 

“We are reducing rates on selected two-year Nationwide tracker mortgages, particularly for those with larger deposits in response to customer demand for more flexible products and no limits on overpayments,” said Henry Jordan, Nationwide’s head of mortgages. 

“The two-year tracker mortgage products also complement the new five-year tracker mortgage options that Nationwide recently introduced to extend member choice.”

Rebecca Robertson, financial planner at Evolution for Women, welcomed the rate cuts.

She said: "This a positive change. The lenders are trying to move mortgage owners off standard variable rates onto trackers in the belief that rates will decrease or remain the same. Many are staying put and waiting to see what happens."