New cut for lender's mortgage rates
Updated on 16 July 2008
The UK's biggest building society has cut its mortgage rates for the second time in two weeks following a fall in the cost of wholesale funding.
Nationwide is reducing the cost of some of its fixed-rate and tracker deals by up to 0.46% from Friday.
But the group is also hiking rates by 0.1% for people taking out two and three-year tracker mortgages who have deposits of less than 10%.
The group said it was reducing the cost of its deals following a recent fall in swap rates, upon which fixed-rate mortgages are based.
A number of other major lenders have also slashed their rates during the past two weeks, including Abbey, Cheltenham & Gloucester and Barclays' lending arm the Woolwich.
The biggest reduction made by Nationwide is to its lifetime tracker deal, with rates on this mortgage being reduced by 0.46% to 5.98% for people paying a £599 arrangement fee and who have a 25% deposit.
Two-year fixed rate deals are being cut by 0.4%, to give a new rate of 6.18% for people remortgaging who are borrowing 75% of their home's value and pay a £599 fee.
But borrowers with a deposit of less than 10% will now have to pay 0.1% more for a two-year tracker, with the rate raised to 6.68%.
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