Nationwide scraps 25-year mortgage

Initial reports stated that the £50 million funding for the package had been exhausted after it proved very popular with buyers. It was offered at a rate of 5.63 per cent, with a 10 per cent buyer’s deposit, while a 5 per cent deposit produced a rate of 5.93 per cent.

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The package was especially attractive for its get-out clause that could be triggered without penalty after the first 10 years. Buyers could also remortgage without penalty after the first 10 years.

Nationwide stated that the package was closed to new applications but it was hoping to relaunch it if financial backing could be secured. Matthew Carter, head of mortgages at Nationwide, said: “We hope to be able to re-launch the product soon, providing we are able to secure a competitive rate on the money markets. We remain committed to offering long-term good value to members and we are pleased our borrowers have been able to realise the benefits of mutuality as a result of this product.”

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Clare Mortimer, senior press officer at BM Solutions, said: “Fixed rates will always prove attractive to a certain number of borrowers. The latest Council of Mortgage Lenders figures have demonstrated that recently the majority of customers are looking for stability in their repayments. There are also an increasing number of borrowers looking to take advantage of discounted trackers, capped rates and deals with the ability to move around without any early repayment charges.”