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Monday 22nd of February 2010
January 20, 2009    

Nationwide cuts fixed rates

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by Gill Montia
Nationwide cuts fixed rates

The UK’s third-largest mortgage lender, Nationwide, is cutting the cost on its fixed-rate home loans by up to 1%.

The building society will be reducing rates on its two, three and five year fixed-rate deals from 21st January.

A two-year fix will be available at 4.39% (down from 4.88%) for up to 60% loan-to-value (LTV) and a £995 fee.

For the same deal with no fee a rate of 5.09% applies, down from 5.38%.

On a three-year fix with up to 75% LTV and a £995 fee, the rate falls a full 1%, to 4.88%.

Existing borrowers who are moving home can obtain a 95% LTV two-year fixed deal at 7.09% with no fee, or from 6.68% to 6.39% with a £995 fee.

Nationwide’s divisional director of mortgages, Matthew Carter, explains that recent reductions in money market swap rates have enabled the reductions but he adds that the financial climate remains volatile.

Money market swap rates are determined by the direction in which analysts expect interest rates to move in the future and have been falling in recent months, having peaked in July of last year.

The latest round of reductions from Nationwide come in addition to a recent 0.5% cut its standard variable, in line with January’s base rate reduction.

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