The Nationwide Building Society is launching new tracker mortgage deals for borrowers with a 10% deposit tomorrow (4 February).
The mutual has now extended its range of tracker mortgages to 90% LTV. Rates for the new two-year tracker up to 90% LTV start at 3.49% for new mortgage customers and 3.39% for existing customers.
There is also a new 90% LTV three-year Flexclusive tracker rate, which carries no product fee, priced at 3.59% for new customers and 3.49% for existing customers.
Both the two year and three year Flexclusive tracker products offer the flexibility to customers of having no Early Repayment Charges (ERCs), allowing them the option to make unlimited overpayments on their mortgage. Customers can also take the option to ‘Switch and Fix’ to a Nationwide fixed rate if they require more certainty in the future.
Key changes include:
· New 3.49% two year tracker up to 90% LTV with £999 product fee (3.39% for existing Nationwide mortgage customers)
· First time buyers pay a reduced product fee of £499
· New 3.89% two year tracker up to 90% LTV with no product fee (3.79% for existing Nationwide mortgage customers)
· New 3.59% three year Flexclusive tracker up to 90% LTV with no product fee (3.49% for existing Nationwide mortgage customers)
Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates.
Nationwide also continues to offer its Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers with those of its top six high street competitors and guarantees to offer the lowest comparative rate for those looking for a new deal.
The Loyalty Rate Mortgages changes are as follows:
Five year fixed rates
· 90% LTV 5 year fixed rate with no fee reduced by 0.10 percentage points to 4.34%.
Three year fixed rates
· 80% LTV 3 year fixed rate with £999 fee reduced by 0.05 percentage points to 2.74%.
· 80% LTV 3 year fixed rate with no fee reduced by 0.05 percentage points to 3.04%.
Richard Napier, Nationwide’s director of mortgages and savings, said: “There are currently few tracker mortgages at up to 90% in the market, so this addition to Nationwide’s range will particularly appeal to those looking for a competitive rate with added flexibility. With these Nationwide tracker products, customers will have the security of knowing they will not have to pay early repayment charges, which allows them to make overpayments at any stage and therefore reduce the amount of capital they owe.
“As a result, customers without large deposits will be able to benefit from a wider range of choices, including tracker and fixed rate deals, when choosing the most appropriate mortgage for their needs.”