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Nationwide Reduce Mortgage Rates

Written By On 25/10/2013

More competition has been added to the loan market as the Nationwide reduces it's complete ninety per cent LTV (loan to value) mortgage products by 0.3% across the board. This can only be good news for home buyers.

This means that new customers who can put down a ten per cent deposit will find a two-year fixed rate deal starting at 3.99%, but existing clients will be able to acquire the same at 0.1% lower.

There will be a nine hundred pound arrangement fee added for the privilege, but first time buyers will only need pay four hundred pounds.

Also from today, their eighty five per cent LTV fixed two year offers begin at 3.24%, whilst if you can manage a twenty per cent deposit, then it starts as low as 2.79%. All of which have the same arrangement fees as above.

Tracie Pearce, head of group mortgages at Nationwide said

These reductions at eighty to ninety per cent LTV demonstrate how Nationwide is committed to supporting both first time buyers and home movers, enabling those with smaller deposits to access very competitive rates

It is seen as a move by the Nationwide to compete with the lenders who have already joined the government's Help to Buy scheme. Since the scheme was launched and now extended, first time buyers have been given a much better choice of mortgage loans and are being approved far easier. However, the building society has still not ruled out the possibility of signing up in the future.

The spokeswoman for Britain's largest building society added

No decision has been reached. Nationwide is continuing to support lending to those with smaller deposits and we are already very active in the high LTV sector of the mortgage market.