You are here: Home - News -

Nationwide reintroduces tracker mortgages

by:
  • 24/03/2020
  • 0
Nationwide reintroduces tracker mortgages
Nationwide Building Society has brought back its two-year residential tracker mortgages just days after the product was withdrawn from its offering.

 

The mortgages will go live on 25 March, with house purchase and first-time buyer products starting from a rate of 1.39 per cent and remortgages from 1.19 per cent. 

The products will cover a range of loan to value tiers and come with both £0 and £999 fee options. 

Henry Jordan (pictured), director of mortgages at Nationwide, said the society took the “prudent decision” to consider the impact of the two interest rate cuts on its range. 

“We are re-introducing two-year trackers to our mortgage range to enable us to offer products with flexibility and no early repayment charges,” he said. 

Nationwide’s return is likely to be welcomed by brokers.

Analysis conducted by Mortgage Solutions found that a third of tracker mortgages had been withdrawn since the Bank of England’s last base rate cut to 0.1 per cent on 19 March.

 

Rate reduction 

Nationwide has also announced it will pass on a further 0.15 per cent rate reduction to existing variable rate borrowers to reflect the cuts made to the Bank of England bank rate.  

This follows on from the society confirming it would pass on the initial 0.50 per cent reduction to borrowers from 1 April. 

With the bank rate now at a record low of 0.10 per cent, Nationwide’s base mortgage rate (BMR) and standard mortgage rate (SMR) will reduce by an additional 0.15 per cent to 2.10 per cent and 3.59 per cent respectively, with these new rates coming into effect on 15 April.  

Borrowers on an existing tracker rate mortgage will also see their rates reduce by a further 0.15 per cent. 

Jordan added: “With a second cut in interest rates in just over a week, it is important that borrowers have clarity about what this second change means for them and the future interest and payments on their mortgages.  

By passing on this latest rate reduction in full, from 15 April, we hope to minimise mortgage costs for our members during this difficult period.” 

Earlier, the society closed its dedicated broker support line as a result of government advice surrounding coronavirus. 

Jordan added: “While we continue to work hard with valuation and conveyancing partners to progress applications, we ask members and brokers to bear with us during what is an unprecedented period.”

 

There are 0 Comment(s)

You may also be interested in

Read previous post:
Income protection enquiries treble as borrowers fear for jobs

Mortgage and protection advisers have reported a surge in homeowners asking for quotes to insure themselves against loss of income...

Close