Mortgage bulletin – Nationwide cuts rates, including NewBuy

Effective today, Friday 18th May 2012, and following a cut in some of its rates and fees earlier this month, Nationwide is cutting interest rates by 0.10% on a number of its mortgages, including some of its range of 95% loans available under the government-backed NewBuy scheme.

"At a time when many lenders are increasing their rates, we're pleased to offer our customers some good news by continuing to reduce ours," says Tracie Pearce, head of group mortgages, product and pricing at Nationwide. "It's particularly welcome for those wishing to fix for five years, especially as earlier this month we cut the product fee by half. We're also cutting our five-year fix NewBuy rates again, which, combined with the fee discount, are cheaper than when they were launched earlier this year."

The figures for the new 5.99% five-year NewBuy fixed-rate deal on a 90.01% to 95% loan-to-value (LTV) are:

• £450 product fee for house purchase (down from £900)
• £200 product fee for first-time buyers (down from £400)
• £99 booking fee

The lender has also reduced the product fees on its 3.89% five-year fixed rate deal up to 70% LTV by the same amount as for the NewBuy loan. Borrowers who need only 60% LTV can now get a two-year fix at 3.39%.

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