The offer is exclusively available to existing Nationwide mortgage borrowers switching to another Nationwide mortgage. The product also has no reservation fee, which means a saving of GBP599 compared to the usual fee on the product. According to Nationwide, at 5.98% and no reservation fee, the five-year fixed-rate mortgage is the lowest in the market.
Nationwide said that over 250,000 borrowers will see their two-year fixed-rate mortgage mature between October and December 2007. Two years ago, in autumn 2005, fixed rates dipped to a low point, with an average rate for a two-year deal being just 4.56%. Since then, the average two-year fixed-rate has risen by over 1.8%, from 4.56% to around 6.41%.
According to Nationwide, this makes the new five-year fixed-rate mortgage a potentially attractive deal for Nationwide borrowers whose current deal is coming to an end.
Nationwide’s decision to reward loyalty to existing mortgage customers follows a similar mortgage deal, launched earlier in the year, which proved to be popular with members. At the same time, Nationwide will withdraw the GBP100 reservation fee discount offer on all products for existing Nationwide borrowers.
