Nationwide enters the fix rate-cutting battle

Thursday 2nd August 2012

Nationwide has entered the rate-cutting war with the launch of a four-year fix at 2.89%, available direct only.

It is available at 60% LTV with a £900 fee (£400 for first-time buyers) and is only for customers with a Nationwide FlexxAccount.

Tracie Pearce, Nationwide head of group mortgages, products and pricing, said: “For Nationwide, market-leading headline rates aren’t just about attracting new customers. We want to ensure that those who have the deepest relationships with the society benefit most, and are rewarded for their loyalty.”

The rate cutting was sparked by HSBC launching the lowest-ever five-year fix at 2.99% last month, followed by Sastander and RBS/NatWest. All the deals, however, are for wealthier borrowers with at least 40% of equity.