Nationwide reduces five-year fixed and two-year tracker rates

Nationwide is to reduce all five-year fixed mortgage rates by 0.10% and all two-year tracker mortgage rates by 0.15% for new applications.  The reduction means Nationwide will offer a five-year fixed rate at 3.99% (up to 70% LTV) with just a £99 booking fee - see below for details.  All changes take effect on Tuesday 2 August 2011.

Martyn Dyson, head of mortgages at Nationwide, said: "Five-year fixed rate mortgages can be ideal for customers who prefer more certainty about their mortgage payments, so our decision to further reduce these rates is good news for those people.  We expect our new five-year fixed rate at less than 4% with just a £99 booking fee to be very popular.

"We're also reducing two-year trackers, which all come with a ‘switch & fix' option, allowing customers to switch from their tracker to a fixed rate in our ‘switch and fix' range without early repayment charges."

Five-year fixed rate available at 3.99% (up to 70% LTV)

No product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and remortgage customers.

Other rates up to 85% LTV also available.

Five-year fixed rate available at 3.79% (up to 70% 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.

Other rates up to 85% LTV also available.

Deals with no product fee are also available.

Two-year tracker rate available at 2.44% (Bank of England Base Rate + 1.94%) (up to 70% 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.

Deals with no product fee are also available.

All other Nationwide mortgage rates remain unchanged.