Nationwide reduces home buying rates, including 10 year fixed mortgage deal

The Nationwide Building Society has launched what it describes as the lowest 10 year fixed rate mortgage currently on the UK market.

The new 10 year fixed rate deal, available at up to 60% LTV, is reduced by 0.55% to a rate of 2.94% for new mortgage customers, and 2.84% for existing mortgage customers.

This comes with a £999 product fee, reduced to £499 for first time buyers. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

As part of a broad range of reductions for those looking for payment security with longer term fixed rates, five year fixed rate deals have also been reduced by up to 0.40%, with rates starting from 2.44% for new mortgage customers.

A wide range of two and three year fixed deals have also been reduced. The two year fixed rates now start at 1.74% for new mortgage customers and both three year fixed rates and the four year fixed rate Flexclusive deals, available only to Nationwide’s main current account customers, both now start at 2.24%.

Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates, with two year fixed rates for existing customers now starting at 1.64%, Nationwide’s lowest ever fixed rate.

‘There has been a growing trend of customers opting for longer term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently introduced 10 year fixed rate mortgages proving a popular addition to the range,’ said Richard Napier, Nationwide’s director of Mortgages and Savings.

‘This competitive range of new fixed rate mortgage deals is likely to appeal to both first time buyers and those looking to remortgage by ensuring longer term security of mortgage payments,’ he added.