Nationwide Launches Cheap Mortgages for 2012

The Nationwide building society launched a new two-year fixed rate mortgage deal this week, aimed at existing customers, people seeking to move home and first-time buyers alike. The 90 per cent loan-to-value (LTV) mortgage comes with an interest rate of 5.29 per cent with a £900 arrangement fee, or a rate of 5.69 with no fee. First-time buyers are also being tempted to choose the Nationwide mortgage with the offer of £500 off the arrangement fee. Another product launched recently by the building society is a five-year fixed-rate mortgage at 70 per cent LTV with an interest rate of just 3.59 per cent, along with a £900 booking fee and an additional £99 booking charge aimed at existing Nationwide customers, people seeking a remortgage and house-buying customers. For an interest rate of 3.79 per cent, the lender will waive the £900 fee but the £99 booking charge will still apply. Nationwide head of mortgages Martyn Dyson commented: “We are continuing our support for the housing market by extending our range of 90 per cent LTV mortgages to now include two-year fixed rate products.” “It means we offer a comprehensive fixed rate range at 90 per cent LTV including two, three and five year fixed rate deals, offering some of the best low deposit deals currently available.” Rival lender the Chelsea Building Society has also started the year by launching a new range of mortgage products, with cheaper two, three and five-year fixed-rate mortgages, plus reductions in the cost of its tracker mortgages.