Nationwide have released a two-year tracker mortgage, giving highly competitive interest rates set slightly below 4.5 per cent. The tracker is available from today, and instead of giving the advantage of fixed-rate repayments, the mortgage loan follows Bank of England base rate . If interest rates go down, therefore, the customer benefits.
The mortgage loan has a key feature, however, known as switch and fix. This allows borrowers to switch their loan to a fixed-rate mortgage at any point. The loan does come with a reservation fee approaching 2000 pounds. Nationwide customers receive a 200 pound discount on this fee, however.
The executive director of Nationwide, Stuart Bernau, reportedly claimed: "Our new tracker product has been designed to suit people moving home who prefer to opt for a shorter term deal, with a lower rate and higher fee. It would suit borrowers with larger mortgages and offers great value compared to similar products in the market."




