With Chancellor Alistair Darling praising 10-year fixes only weeks ago, the Society has now announced it will cut the rates on its 10-year product.
It is also launching a two-year fixed rate product (from 5.68 per cent) and is improving the availability of its two-year tracker deals.
Matthew Carter, Nationwide’s divisional director for mortgages, said: “While two year deals have historically been a favourite with borrowers, competitive fixed rate deals over a longer term period are becoming increasingly popular.
“Some customers may be put off by the thought of being tied in for five, 10 or even 25 years, but at Nationwide borrowers can move their mortgage to a new house, overpay or underpay during the deal period. It is also worth borrowers remembering that Nationwide’s 25 year fixed rate deal has no tie-ins after the first 10 years, meaning they can exit the deal without penalty if their circumstances change.”
New rates and deals are as follows:
- 10 year fixed rate now available from 5.68% for all borrower types (previously 5.78% house purchase, 5.98% remortgagers, switchers and additional borrowing);
- A new two year fixed rate mortgage will be launched for all borrower types. The new deal is available from 5.68% and has a fee of £1,499 for house purchase and £1,999 for remortgagers, switchers and additional borrowing;
- Two year tracker (with £1,499 fee) rate for house purchase will increase to 5.58% (previously 5.48%);
- A new two year tracker (with £1,499 fee) will be launched for remortgagers, switchers and additional borrowing at a rate of 5.68%;
- Extension of the maximum loan size for both two year tracker products from £300k to £500k.
