Mortgage News
Nationwide cuts tracker deals and remortgage fixes
Nationwide has cut its margin on a range of new base rate tracker mortgages to offer borrowers lower variable rates.
From tomorrow, reductions will be made for purchases and remortgage borrowers on deals that do not carry a mortgage arrangement fee.
Highlights from the rate reductions include: 5.99 per cent at 60 per cent loan to value (LTV) for homemovers, tracking the base rate by +0.74 per cent for two years. Previously the rate was 6.29 per cent. At 80 per cent LTV, borrowers can access a variable rate of 6.22 per cent cut from 6.44 per cent. At 95 per cent LTV, a rate of 6.70 per cent is available, down from 6.74 per cent.
These changes should see Nationwide move to the top spot in the best buy tables for two-year trackers for LTVs at 85 to 95 per cent.
For first-time buyers, refreshed rates include a two-year tracker rate at 60 per cent LTV priced at 6.14 per cent and a 75 per cent LTV option at 6.19 per cent. Both deals have been reduced by 0.40 per cent.
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Nationwide’s move ‘strengthens their variable rate position’
Nicholas Mendes, mortgage technical manager for John Charcol, said: “Nationwide have made sweeping changes to their fee-free tracker pricing products.
“With the recent base rate hold and market sentiment that we have reached the peak, tracker products are a fantastic option for mortgage holders not looking to be tied into a deal in a period when fixed rates are slowly reducing.
“Nationwide are already market leaders with their fixed rate proposition, so this move strengthens their position for mortgage holders looking for a variable rate.”
The building society has also cut rates on its fixed rate remortgages by up to 0.40 per cent. A rate of 4.99 per cent is available, fixed over five years, for borrowers who have 40 per cent equity. An arrangement fee of £999 applies.
Henry Jordan, director of home at Nationwide Building Society, said: “Last week, we moved to offer sub-five per cent rates for first-time buyers and those looking to move to their next home. These latest changes mean borrowers remortgaging to Nationwide can also now access sub-five per cent rates.”