Nationwide mortgage range expanding for existing borrowers

With effect from tomorrow, 10 June, Nationwide is expanding its mortgage range for existing customers with up to 95% LTV.

There will be new 2 and 3 year fixed rate mortgages available with up to 95% LTV.

With loan sizes up to £150,000 or between £150,000 and £500,000 there are a range of fixed rate deals, offering differing levels or fees or interest rate, as suits your requirements.

For example for 2 year fixed rate mortgages up to £150,000

• interest rate 2.79%, reservation fee of £2,499
• interest rate 3.34%, reservation fee of £1,499

Nationwide are also offering 2 and 3 year capped tracker rate mortgages with up to 95% LTV, including for loans up to £150,000

• 2 year tracker, initial tracker rate 2.99%, capped tracker rate 3.99%, reservation fee £599
• 3 year tracker, initial tracker rate 3.49%, capped tracker rate 4.49%, reservation fee £699

Nationwide mortgage director, Andy McQueen, said ‘We are now offering a range of additional mortgage options for existing customers who are coming to the end of their deal. In some cases, borrowers will have the opportunity to fix their mortgage deal at a lower rate or to take a variable rate product with a cap.’

He added ‘As well as being able to choose from a wider product range, the new capped trackers will give customers the added assurance that their payments will not go beyond a certain level should interest rates rise during their deal term.’

There is much speculation, and some evidence, that the low mortgage interest rates are on their way up.

This is supported by recent rises in the cost of swaps, used by the lenders to fund the fixed mortgages.

Some lenders are starting to raise their rates, including HSBC yesterday upping its 5 year fixed mortgage to a new rate of 4.99%.

Is it time to secure a mortgage deal now?