Nationwide cuts rates on mortgages

Nationwide has revealed that it will be making some substantial changes to its fixed-rate and 25-year mortgages.

From Friday, the rates on its five-year fixed-rate mortgage will be cut to 5.63 per cent while the fees for those opting for such a product will be £100 cheaper.

The building society also pledged to cut rates on its 25-year fixed-rate mortgage, which will now be available from 5.98 per cent.

Matthew Carter, divisional director for mortgages at Nationwide, said: "Recent volatility in the financial markets and uncertainty over the outlook for the immediate future, make it an ideal time for borrowers to consider taking a longer-term fixed rate mortgage.

"We also hope these new deals will appeal to the quarter of a million borrowers who are due to mature from two year fixed rate mortgages between October and December this year.

He added that the lender hoped the new charges would help to "ease the pain of the rate shock these borrowers could experience as their current deals end".

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