Nationwide unveils sub-2% 5-year fix

Ryan Bembridge

September 5, 2016

Nationwide has unveiled a sub-2% 5-year fix for the first time and cut a selection of other rates by up to 0.20%.

The lender is offering a 1.99% 5-year fix with a £999 fee, while borrowers can also take out a 2.19% product with no fee.

The society has unveiled tracker products at 95% loan-to-value, with introductory rates of 3.59% with a £999 fee or 3.99% with no fee, with no early redemption charges.

Some existing tracker deals have been increased, as 2-year trackers now stand at 1.34% with a £999 fee and 1.74% with no fee following a 0.05% increase.

Nationwide has reduced rates on a wide selection of its 3 and 10-year fixed rate products.

Its 3-year fixes start at 1.69% with a £999 fee and 1.99% with no fee, while 10-year fixes have been reduced to Nationwide’s lowest ever rate of 2.69% with a £999 fee or 2.79% with no fee to 60% LTV.

Henry Jordan, Nationwide’s head of mortgages, said: “In addition to our recent reductions to fixed rate mortgage deals, we are making further cuts to fixed rate products for those looking for competitive rates and payment security.

“For those with small deposits looking for flexibility, including first-time buyers, we are also introducing a new tracker mortgage product at 95% LTV at less than 4%.

“The society continues to offer tracker rates that are amongst the most competitive available, with additional features such as a £500 cashback for first-time buyers, free standard valuations and no ERCs.

“With the combination of competitive rates and access to additional benefits for both new and existing customers, Nationwide will continue to offer deals that are amongst the best on the high street.”

The society has made standard mortgage valuations fee-free, while first-time buyers receive a £500 cashback to help with the cost of moving.

Nationwide Flex main current account holders who are taking out a Nationwide mortgage are eligible for an additional £250 cashback, while existing Nationwide mortgage customers receive a £250 cashback when they take a new mortgage deal in addition to a 0.10% discount on new customer rates.

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