Nationwide launches long-term tracker product

Amanda Jarvis

January 9, 2006

The lifetime tracker will track the Bank of England Base Rate for the term of the mortgage (up to a maximum of 40 years). In addition, Nationwide is introducing an innovative switch and fix facility enabling borrowers to leave any tracker product reserved after 10 January and move to a fixed rate deal without incurring any early repayment charges.

The tracker product is available for a period of five to 40 years. Interest is fixed to track above the Bank of England Base Rate (BBR) from just +0.39 per cent giving borrowers reassurance that they will get a good value deal over the long-term.

Benefits of the lifetime tracker include:
Priced from just +0.39 per cent above the BBR;
Long-term good value without having to remortgage regularly;
The ability to overpay up to £500 each month or take payment holidays;
Reservation fee of £199 can be paid upfront or added to the loan.

The Society recognises it is hard to predict the future and there may come a time when a borrower wishes to move from a tracker product to a fixed rate. To meet this need, Nationwide has launched a switch and fix facility that enables customers to switch from the Society’s tracker products before the end of their deal to a fixed rate product without early repayment charges*.

This facility gives borrowers confidence when taking out their tracker to know that, should their circumstances change, they can get another mortgage deal that many better suit their lifestyle.

Benefits of the switch and fix option include:
Offers borrowers confidence in their choice of mortgage giving an opt-out from their tracker should their circumstances change or interest rates rise;
Opportunity to switch from one product to another during the deal period without incurring early repayment charges;
Nationwide’s fixed rate products are flexible like all of the Society’s tracker products.

Steve Clode, divisional director at Nationwide, said: “We are keen to provide borrowers with products that suit their lifestyles. Borrowers are becoming more financially astute and the benefits of a longer term mortgage deal are more obvious. The opportunity to take advantage of a competitive deal for the lifetime of the mortgage is a real bonus and gives borrowers the opportunity to remortgage and relax.”

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