Money News
Nationwide is to launch a new 5-year fixed rate mortgage, available from 5.98%. This offer - exclusively available to switchers (existing Nationwide mortgage borrowers switching to another Nationwide mortgage) does not have a reservation fee, giving - in effect - a saving of £599 compared to the usual fee on this product.
Over 250,000 borrowers will see their 2-year fixed rate mortgage mature between October and December 2007. Two years ago, in Autumn 2005, fixed rates dipped to a low point, with an average rate for a 2-year deal being just 4.56%. Since then the average 2-year fixed rate has risen by over 1.80% from 4.56% to around 6.41% - making the new 5-year fixed rate mortgage a potentially attractive deal for Nationwide borrowers whose current deal is coming to an end.
The Society's decision to reward loyalty to existing mortgage customers with this offer follows a similar mortgage deal, launched earlier in the year, which proved to be very popular with members. At the same time, it says it will now withdraw the £100 reservation fee discount offer on all products for existing Nationwide borrowers.
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.
21 September 2007 © Moneyextra.com
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