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Nationwide launches new fixed-rate mortgages

14 July 2005
Nationwide has cut its fixed-rate mortgage deals for the second time within weeks.

Borrowers with a deposit of at least ten per cent will now be able to benefit from a two-year fixed rate deal of 4.49 per cent.

The building society only cut it rates from 4.69 per cent to 4.49 per cent last month, reports.

Nationwide's new rates will be available to borrowers from July 12th.

The decision to offer fixed-rate borrowers an even cheaper deal follows similar moves by other major lenders, amid speculation that the Bank of England will reduce the base interest rate from 4.75 per cent, in August.

Mortgage lenders fighting for market share have taken advantage of a drop in swap rates – the level at which financial institutions lend to each other – to offer cheaper fixed-rate deals.

Quoted in The Times at the weekend regarding Nationwide's last move to cut its fixed-rate deals only recently, spokesman Alan Oliver said: "The money markets meant we were in a position to use swap rates to offer this deal.

"We would expect quite a bit of business to come through as customers like the flexibility of short-term deals."

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