Nationwide: Two year fixed rate mortgage cut

31 March 2006
Nationwide has reduced the rate on one of its two-year fixed rate mortgages by 0.05 per cent to 4.39 per cent.

Potential homebuyers could therefore benefit from lower monthly repayments on their mortgage if borrowing up to 90 per cent of the total value of the property (LTV).

At the same time borrowers can take advantage of flexible features such as overpayments if they want to clear their debt even earlier. Similarly, if they find times are tight, they have the option of underpaying over a given period.

However, anyone tempted to take the plunge and join the property ladder should also bear in mind that the mortgage includes a reservation fee of £599. This can be added to the cost of the total loan if borrowers cannot afford an upfront payment.

For those looking to remortgage to a better deal there are no valuation or legal fees, just a £99 administration fee.

Nationwide also guarantees that its base mortgage rate (BMR) will never exceed the Bank of England's rate, recently kept at 4.5 per cent, by more than two per cent.

The new two-year fixed rate came into effect on March 28th, immediately replacing the previous product.

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