More good news for borrowers and savers from Nationwide

Following the recent launch of its new Regular Savings Account and highly competitive Fixed Rate Bonds and Fixed Rate ISA Bonds, Nationwide Building Society has today announced a number of further initiatives to reward both loyal borrowers and savers.

These all form part of a series of member value initiatives that will be unveiled over the next few months.

From 1 March 2007 the Society will introduce:

a member exclusive mortgage – a great value five year fixed rate deal, now with the reservation fee removed, for those with at least three years’ membership, saving up to £499

increased loyalty reservation fee discount (£200 off compared to new borrowers) for existing mortgage borrowers

a more competitive range of fixed rate and tracker mortgages – rates to decrease across fixed rate and tracker product range

Monthly Income 60+, byextending the popular Monthly Income savings account to customers aged over 60, more than 675,000 Nationwide members can now benefit from one of the most competitive instant access accounts in the market

rate guarantees on all its children's accounts - Smart and cash Child Trust Fund and in doing so rate guarantees now apply to over 1.75 million members with Regular Savings, Monthly Income, Loyalty Tracker Bond, Smart and cash Child Trust Fund accounts.

Stuart Bernau, Nationwide's executive director, said: “At Nationwide we can be committed to our members because we have no shareholders to please. These offers have been designed to reward our loyal borrowers and savers demonstrating the benefits of being part of a large mutual organisation.

“We want as many loyal members as possible to take advantage of these great offers from exclusive mortgage deals to savings rate guarantees – there’s something here for everyone.

“These initiatives form part of a series of announcements to be made over the next few months as the Society focuses on delivering value to loyal members, so watch this space…..”

Mortgages - it pays to have your mortgage with a mutual

A new mortgage deal is being launched exclusively for Nationwide members of three years and longer. It will have a very competitive rate from 5.34% fixed for five years, with no reservation fee, saving loyal members £499 compared to the fee for new Nationwide borrowers. Like other Nationwide mortgages, the member exclusive mortgage is also portable, so members planning to move home can take the mortgage with them.

Nationwide is also increasing its reservation fee loyalty discount for existing borrowers. The discount, which is available to existing mortgage borrowers taking out a new product, will increase from £100 to £200 (compared to new borrowers), making Nationwide deals even more competitive.

In addition, Nationwide is also decreasing rates across its range of fixed rate and tracker mortgages. The new rates make Nationwide’s mortgage deals some of the most competitive in the market place.

Savings - good news for young and old

Nationwide's Monthly Income 65 + now becomes Monthly Income 60 +. An instant access passbook operated account paying monthly interest of 5.28% AER on balances from £1 which is guaranteed to match or better the Bank of England Base Rate until January 2011. Interest is paid in to a FlexAccount.

Guarantees are also being introduced for young savers on both Nationwide's cash Child Trust Fund and Smart account. Nationwide's cash Child Trust Fund pays 6.55% AER for customers paying in £240 or more each year and it will now carry a guarantee that the interest rate will be at least 1.30% more than the Bank of England Base Rate until January 2010.

Nationwide's Smart account pays 5.52% AER on balances from £1 and it will now carry a guarantee to pay at least 0.25% more than the Bank of England Base Rate until January 2010.