Nationwide launch 25 year fixed rate mortgage

Nationwide Building Society has announced the launch of an innovative new 25 year fixed rate mortgage. Benefits of the product include a low rate (from 5.49%), the security of fixed payments and flexibility – there are no early repayment changes after the first 10 years – making it an ideal choice for first time buyers or borrowers moving home who still have a term of at least 25 years.

Features of the 25 year fixed rate mortgage include:

Competitive rate from 5.49%: a secure rate which beats many competitors’ 10 year deals and offers 15 further years of payment stability for borrowers who want it. Also very competitive against most 5 year deals

No Early Repayment Charges after the first 10 years

Flexibility: the ability to overpay (by up to £500 per month), underpay and take payment holidays

Portability: as with all Nationwide mortgages, borrowers can take it with them when they move home and top it up with an additional loan if they wishto move to a larger property

Saving on fees: with only one arrangement fee, borrowers could save hundreds and in some cases, thousands of pounds, over the term of their mortgage

Security: protect against potential interest rate rises with fixed payments

Simplicity: no need to choose and arrange a new deal every few years

Reservation fee of £599 (£200 discount for existing borrowers)

Available to all borrower types

Stuart Bernau, Nationwide’s executive director, said: “At Nationwide we are totally committed to our members because we have no shareholders to please. Our new 25 year fixed rate mortgage is a clear demonstration of this. It not only offers long-term good value to borrowers looking for the security of fixed payments but also the flexibility of a 10 year deal.

“This is the latest in a series of initiatives that have been designed to complement our existing mortgage product range – from short-term to long-term deals, whether buying a first home or a new home, switching lender or switching deal – we’ve got something to suit everyone.”