Nationwide Building Society cuts mortgage rates

Nationwide Building Society is in the news today. As well as taking over the healthy parts of Dunfermline Building Society, it is cutting the interest rates on its fixed and tracker mortgages.

The cut in mortgage rates will be by up to 0.25% and will take effect from 1 April 2009.

Mortgage director at Nationwide, Andy McQueen, said ‘Following recent movements in the money markets, we are pleased to be in a position to cut the price of our fixed and tracker mortgage deals.’

2,3 and 5 year fixed rate mortgages are available.

All are open for new customers to borrow up to 85% LTV and for existing customers up to 95% LTV.

Reservation fees are quite high at £995, although this is reduced to £299 for existing customers switching at the end of a current deal.

The best rates are for up to 60% LTV:

• 2 year – 3.78%
• 3 year – 4.28%
• 5 year – 4.78%

The best 2 and 3 year tracker mortgage rates are also available for up to 60% LTV and are 3.33% and 3.26% respectively.

Nationwide allows a maximum of £500 per month overpayment on its fixed and tracker mortgages.