New Nationwide fixed and tracker mortgage cuts 'good news'

Date:Tuesday 4th August 2009
Author: Max Freedman

The recent announcement that the costs of some Nationwide fixed and variable-rate mortgages are to be cut has been welcomed.

According to, any move to reduce interest rates on home loans should be viewed as a "positive step".

However, the price comparison site added that the impact of the cuts will be limited because while the new rates are competitively priced, they are not "market leading".

In addition, people seeking to buy homes who have limited deposits will not benefit as much because the loans are restricted to borrowers with significant equity in their homes, claimed.

It commented: "Nationwide requires borrowers to have at least 40 per cent to put down in order to qualify for its lowest rates."

Mortgage providers must begin offering deals to all borrowers, including those with smaller deposits, the organisation added.

Among the deals announced by Nationwide were two-year fixed-rate mortgages available from 3.98 per cent up to 60 per cent loan-to-value.