Nationwide cuts fixed-rate mortgage costs

Friday, 22 August 2008 12:00

Nationwide Building Society has announced it is to become the latest lender to make reductions to its mortgage product range.

Rates are to be cut by up to 0.2 per cent across the fixed-rate range, following a sustained fall in Swap rates - the rate at which UK banks lend to each other.

Nationwide has also confirmed a new five-year fixed-rate deal with a £1,499 fee, available from 5.88 per cent for house purchasers and 5.68 per cent for remortgage.

Furthermore, a new tier of 60 per cent loan-to-value (LTVs) across all products - aimed at those looking to remortgage.

"We are pleased to be in a position once again to reduce rates on a number of deals available to customers who are buying a home, remortgaging, switching their current mortgage deal or taking a further advance," explained Matthew Carter, Nationwide's director of mortgages.

"These changes demonstrate our commitment to offering good value mortgage deals in what continues to be a challenging time in the market."

For large loan borrowers with an LTV of up to 60 per cent Nationwide will increase maximum borrowing from £500,000 to £1 million on all products except those with a reservation fee of £1,499, where the limit will remain at £500,000.

Nationwide is currently waiving the £599 reservation fee, for a limited period, for existing borrowers who are looking to switch their Nationwide deal.

The changes will be effective from Thursday August 28th.

Nationwide's decision follows announcements from Yorkshire Building Society, Mansfield Building Society, and Britannia Building Society and Leeds Building Society - also confirming cuts in lending costs.

Chris O'Toole

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