Nationwide BS  

Nationwide cuts rates on two-year products

Nationwide cuts rates on two-year products

Nationwide has reduced the rates on some of its two-year fixed and tracker rate mortgages by 0.15 percentage points. 

The new rates apply to the building society's 85 per cent loan-to-value products from today (December 8).

They are available to first-time buyers, house purchase, remortgage and existing customers moving home. 

The two-year fixed rate products now come at 2.84 per cent with a £999 fee, or 3.09 per cent with no fee.

The two-year tracker has been reduced to 2.94 per cent with a £999 fee, or 3.19 per cent with no fee.

The lender has also expanded its lending at 90 per cent LTV from today to include loans for house purchase and existing mortgage members looking to move home, giving them the same access to the products as first-time buyers.

Henry Jordan, Nationwide’s director of mortgages, said: “Despite the pandemic, activity in the housing market remains high as people seek to take advantage of the stamp duty holiday.

"Two-year fixed and tracker rates remain some of our most popular products and these latest changes will help us remain one of the most competitive providers on the market."

He added: “Since we re-entered the 90 per cent loan to value market in July, we have been the only major lender to offer such mortgages without volume restrictions and as a further show of support for the housing market we are now able to expand our lending at this loan to value to help house purchasers and existing customers moving home as well as first-time buyers.”

Nationwide will also remove the temporary criteria applied to fully gifted deposits and once again allow fully gifted deposits at 90 per cent LTV.

Customers will be able to borrow up to £500,000 over a maximum 25-year term, with rates aligned with those on offer to first-time buyers at 90 per cent LTV, including 3.49 per cent for a two-year fixed mortgage with a product fee of £999.

carmen.reichman@ft.com