Nationwide to launch its cheapest ever fixed rate

Nationwide Building Society will tomorrow launch its cheapest ever fixed rate mortgage when it reduces all of its two-year fixed rates at 60 and 70 per cent LTV.

Its 60 per cent LTV rates will fall by 0.1 per cent and its 70 per cent LTV two-year fixes will fall by 0.15 per cent.

Following the reductions, a 1.94 per cent two-year fixed rate to 60 per cent LTV will be available – or 1.84 per cent for existing borrowers – making it the society’s cheapest ever deal. It has a £900 fee – £400 for first-time buyers – and the rate is reduced by 0.1 per cent for existing mortgage customers.

The society will also offer a 1.99 per cent two-year fixed rate to 70 per cent LTV, with a £900 fee, or £400 for first-time buyers. The product is available at 1.89 per cent for existing borrowers.

Both products have a £99 booking fee and remortgage borrowers get a free standard valuation and a choice of either free legals or £250 cashback.

Nationwide will tomorrow reduce all of its 80 per cent LTV mortgages by up to 0.3 per cent and all 75 per cent LTV mortgages by up to 0.15 per cent. All two- and three-year fixed rates will fall by 0.05 per cent. No rates will increase.

Nationwide head of group mortgages Tracie Pearce says: “These reductions clearly demonstrate our commitment to supporting our customers, both new and existing and whatever the size of their deposit, offering consumer choice.

We are making available to our customers a range of extremely competitive fixed and tracker rates at different LTVs. In particular, the reduction of two-year fixed rates available up to 60 per cent LTV by 0.1 per cent and 70 per cent LTV by 0.15 per cent means we are offering rates to both new and existing customers below 2 per cent.”