Now Nationwide and Co-op join mortgage price war

Nationwide and The Co-operative Bank are the latest lenders to join in the recent bout of mortgage rate cutting.

This follows a flurry of rate cuts last week, led by Barclays, Tesco and Yorkshire Building Society.

From today, Nationwide is reducing selected fixed rate mortgages at 85% and 90% LTV by up to 0.45%.

The reductions are being made on a range of two, three, five and 10-year fixed rates, including a two-year fixed rate charging 2.99% to 90% LTV with a £999 fee.

For buyers with a 15% deposit, rates start at under 4% for the 10-year fixed rate products and 2.04% for the two-year fixed rate, both with a £999 fee.

Nationwide has also made reductions to selected deals in its Flexclusive range, available to customers with a Nationwide main current account. The four-year fixed rate mortgage deals, with a deposit of 15%, start at 2.94%.

Henry Jordan, Nationwide’s head of mortgages, said: “First time buyers will also continue to qualify for a £500 cashback irrespective of which product they choose.

“This is in addition to the benefits available on the Flexclusive range of mortgages, including £250 cashback or the option of free valuations and legal fees.”

The Co-operative Bank has reduced rates across a range of fixed rate mortgages, with its five-year fixed rate cut by up to 0.20%.

Two-year fixed rates have reduced by up to 0.15% and three-year fixed rate mortgages by up to 0.10%.

Highlights include five-year fixed rates now starting from 2.49% at 70% LTV and two-year fixed rates starting from 1.54% at 75% LTV. Both rates come with a £1,499 fee.

Three-year fixed rates now start from 1.89% at 60% LTV, also with a £1,499 fee.

Stuart Beattie, head of mortgages said: “By reducing rates on a range of two, three and five-year fixed-rate mortgages, we maintain our commitment to offer competitively priced products to customers at all stages of the home buying process.

“Whether they are first-time buyers, home movers or simply looking to remortgage, we have something to suit everyone.”