After The Bad News, Now Some Good ........

Date Published 07 July 2008

Nationwide Building Society has cut rates on selected mortgage products, it has been announced.

Under its new pricing system, rates on its two year fixed rate offer with maximum loan to value (LTV) of 75 per cent will be cut from 6.55 per cent to 6.48 per cent.

Meanwhile, borrowers seeking a two year fix with maximum LTV of 95 per cent will see the rate cut from 7.25 per cent to 7.18 per cent.

The cost of the two-year tracker has also dropped and is now available from 5.98 per cent with an arrangement fee of £599.

Matthew Carter, divisional director for mortgages at Nationwide, said: "As a building society we always aim to offer our members the best possible deals.

"These price changes reinforce our message that, despite tougher market conditions, we remain very much open for business."

News of the move comes after Abbey announced it is cutting its tracker rates by up to 0.20 percentage points for borrowers with 25 per cent equity, with Birmingham Midshires also expected to announce a reduction this week.