Nationwide mortgage rates cut

Date:Monday 3rd November 2008

Nationwide mortgage rates have been reduced on some fixed-rate deals, it has been announced.

The two-year fixed-rate mortgage with a fee of £599 is now available from 5.59 per cent.

Matthew Carter, divisional director for mortgages at Nationwide, said that wholesale markets are still volatile and said the lender will "continue to monitor and respond to market conditions and competitor activity".

Nationwide mortgages include the option to make overpayments to a maximum of £500 a month.

Interest is calculated daily and there is no compulsory insurance.

The maximum borrowing on new build houses is 90 per cent and 75 per cent on new build flats.

Last week, Nationwide reported 12 months of falls in house prices.

October saw the twelfth consecutive monthly fall in house values, with the price of a typical house found to be 14.6 per cent lower than at the same time in 2007.

The typical house price dropped by 1.4 per cent last month.

While a typical house price was found to be £158,872, almost £30,000 less than a year before, this is still almost £30,000 more than five years ago.