Nationwide Cuts Rates on Home Credit Mortgages

by Peter Jacobs

The Nationwide has said that as from today some of the mortgage interest rates on its home credit packages will be cut from immediate effect. As recent news showed that mortgage approvals were flat last month some of the mortgage lenders are struggling to get new business especially since the standard variable rate products which most people are now on continue to stay so low. Although the Bank of England has suggested the base rate will increase “at sometime in the future” there is no indication that this will happen soon because the economy is so fragile. Therefore new mortgage deals are continuing to come into play in the market in an attempt to not only win new business but get the housing market moving again.

Home credit mortgage changes

The changes are generally across the board and affect the Nationwide’s range of fixed rate mortgages.

Unfortunately all of these deals are only available for people with at least a 30% deposit or a 70% loan to value (LTV) on their homes but the rate cuts are between 0.9% and 0.29% on the society’s two, three and five year deals. Interestingly nationwide cut its mortgage rates just a couple of months ago so this new move is interesting in perhaps this did not quite hit the mark it hoped for but in any case its good news for homeowners.

Here are the cuts announced which come into effect today :

  • two year fixed rate mortgage cut by 0.19% to 3.19%
  • three year fixed rate mortgage cut by 0.09% to 3.89%
  • five year fixed rate mortgage cut by 0.19% to 4.49%
  • three year tracker cut by 0.29% to 2.69%

all of these deals are for 70% loan to value and have a booking fee of £99 and a £896 product fee attached to them although some first time buyers may be able to get a product fee of £500 – see the website for more details. One the fixed rate or promotional rate is complete then homeowners are placed on their standard mortgage rate which is currently 3.99% which is one of the highest in the industry and was recently changed because of the low base rate from the Bank of England.

Other Nationwide deals

If you don’t have a 30% deposit then Nationwide also offers new mortgage customers the ability to get mortgages at 85% LTV and for existing customers up to 95% LTV. If you are thinking of getting a new mortgage from the Nationwide then you can find all the relevant information on their website and apply online. You should always seek professional advice when taking out a new mortgage or remortgage and you can get this from an independent financial advisor or other qualified financial professional.

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