Nationwide to reduce all two and three-year fixed mortgage rates

Nationwide is to reduce all its two and three-year fixed rates by up to 0.30% for new applications.  The reduction means Nationwide will offer a best buy three-year fixed rate at 3.39% (up to 70% LTV). All changes take effect on Thursday 21 July 2011.

Summary of changes

All two-year fixed rates above 60% LTV to drop by 0.20%.

Nationwide's lowest two-year fixed rate - previously available up to 50% LTV - will be available up to 60% LTV.  This equates to a drop of 0.30% for borrowers at 50.01%-60% LTV.  See below for further details.

All three-year fixed rates at all LTV tiers to drop by 0.20%.

Martyn Dyson, head of mortgages at Nationwide, said: "If you want certainty about what your mortgage payments will be over the next two or three years, then our latest rate cuts for two and three-year fixed rates will be music to your ears.

"Our lowest two-year fixed rate will also be available up to 60% LTV, up from 50% LTV, meaning more borrowers will be able to benefit from the lowest fixed rate in our current range."

Best buy three-year fixed rate available at 3.39% (up to 70% LTV)

£900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase, remortgage and switcher customers.

£500 product fee discount for first time buyers.

Other rates up to 85% LTV also available.

Product fee-free deals are also available.

Two-year fixed rate available at 2.89% (up to 60% LTV)

£900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and remortgage customers.

£500 product fee discount for first time buyers.

Product fee-free deals are also available.

Nationwide's best buy five-year fixed rate at 3.89% (up to 70% LTV) continues to be available.