With effect from 26 October 2007, five-year fixed rate deals will be available from 5.63 per cent. In addition, the fee for home buyers and remortgagors taking a five-ear fixed rate deal is being reduced by £100 to £499.
At the same time Nationwide is cutting the rate on its 25 year fixed rate mortgage, which will now be available from 5.98 per cent.
The new rates are as follows:
Home mover
- Five year fixed rate (with £499 fee) available from 5.63 per cent (previously 5.85 per cent with £599 fee)
- 25 year fixed rate for home movers (with £599 fee) available from 5.98 per cent (previously 6.34 per cent)
- Five year fixed rate (with £499 fee) available from 5.63 per cent (previously 5.98 per cent with £599 fee)
- 25 year fixed rate (with £599 fee) available from: 5.98 per cent (previously 6.34 per cent)
· Five year fixed rate (no fee) available from 5.63 per cent (previously 5.98 per cent)
Matthew Carter, divisional director for mortgages at Nationwide, said: “We are delighted to be offering these very low rates on our five year and 25 year fixed rates. Nationwide’s five year fixed rate mortgage is lower than that of Halifax, Abbey and Alliance and Leicester and the 25 year fixed rate is also very competitive.
"Recent volatility in the financial markets and uncertainty over the outlook for the immediate future, make it an ideal time for borrowers to consider taking a longer-term fixed rate mortgage.
“We also hope these new deals will appeal to the quarter of a million borrowers who are due to mature from two year fixed rate mortgages between October and December this year. The new rates should ease the pain of the rate shock these borrowers could experience as their current deals end, which had an industry average rate of just 4.56%.”
All Nationwide fixed rate mortgages offer borrowers the additional flexibility to overpay, underpay and take payment holidays. They are also fully portable, so borrowers can take their mortgage with them if they decide to move to a new home during the deal period. Borrowers who remortgage to Nationwide from another provider can also benefit from free legal assistance and valuations.
Nationwide will withdraw the current products at 11.59pm on Thursday 25 October 2007.
