Nationwide changes its fixed rate mortgage

Following the recent changes in money market swap rates, Nationwide has changed its fixed rate mortgages, as from August 15.

The new fixed rates, now include a two-year fixed rate with a 699 fee at 5.09%, a two-year fixed rate with a 399 fee at 5.18%, a three-year fixed rate, with a 399 fee at 5.38%, as well as a five-year fixed rate with a 399 fee at 5.33%, and a ten-year fixed rate, with a 399 fee at 5.33%.

The rates are for those customers borrowing up to 90% LTV. Those borrowing 90-95% LTV will be charged a rate that is 0.40% higher than those borrowing 90% and below, this differential was previously 0.30%.

All of Nationwides fixed rate mortgages offer borrowers the flexibility to overpay or underpay during the deal period and are available to both new and existing borrowers.

Following changes to the base rate, the society will increase its base mortgage rate by 0.35% to 6.24% for both new and existing borrowers from 1 September 2006.

Nationwides base mortgage rate will be around 0.5% lower than the standard variable rates of most other major high street lenders. Based on a 75,000 repayment mortgage, borrowers with Nationwide could save nearly 300 over just one year by having their mortgage on the Nationwide BMR of 6.24% rather than Halifaxs variable rate of 6.75%.

The societys tracker mortgages from 1 September will also be increased by 0.25%, the new tracker rates are available at a two-year tracker at 4.62%, and lifetime tracker at 4.93%.