Nationwide launches new mortgage range

Nationwide Building Society is launching a new mortgage range which will take effect from 18 March 2009.

For house buyers, the best rate on a 2 year fixed Nationwide mortgage with up to 60% LTV (Loan to Value) will be 3.88%.

There will be a 3 year fixed rate mortgage available at 4.33% for up to 75% LTV.

Both have a £995 reservation fee, although if you’re a first time buyer this reduces to £745 on the 3 year fixed deal.

Both allow new customers to borrow up to 85% LTV.  For existing borrowers up to 95% LTV can be borrowed.

Nationwide will also be offering a two and three year fixed rate mortgage deal to those remortgaging or switching at the end of their current deal.

These are slightly more expensive than for those buying a home:

• 3.93% for 2 year fixed rate up to 60% LTV
• 4.38% for 3 year fixed rate up to 60% LTV

Both have a £995 reservation fee for new customers or £299 for existing customers.

A 3 year tracker mortgage at 3.78% for up to 60% LTV is being introduced.

The tracker mortgage is available to new and existing customers, however, new customers can borrow up to 80% LTV whereas existing customers can still only borrow up to 75% LTV.

The fixed and tracker mortgages allow up to £500 overpayment per month without penalty.

It is worth noting that existing Nationwide customers swtiching or moving home can borrow up to 95% LTV.