Press
Nationwide reprices tracker
David Pawsey Magazine May 07, 2008
Lender says...
Nationwide has repriced its tracker product range. A two-year tracker is now available at 1.15 per cent more than the base rate, so is currently available at 6.15 per cent.
This product is available up to 75 per cent loan-to-value and there is a fee of £599. The product is also available up to 90 per cent LTV at a rate of 6.35 per cent, 1.35 per cent more than the base rate, for a fee of £599.
There is an early repayment charge of 1.5 per cent during the two-year deal period for both products. Borrowers can make overpayments of up to £500 a month and can then make subsequent underpayments and drawdowns dependent on the overpayment reserve.
Adviser says...
Speaking prior to the latest MPC meeting, James Carter, proprietor of London-based IFA Independent James, said the possibility of a rate cut might make the products more attractive.
He said: "The best of a bad bunch springs to mind. These new rates further indicate the value being hammered out of tracker rates.
"At 1.15 per cent more than base rate, or 1.45 per cent at 90 per cent LTV, it does not set the pulse racing.
"But it could possibly be less than 6 per cent next week and the arrangement fee is reasonable, particularly for smaller borrowers who are finding the increase in lenders fees particularly burdensome."