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Nationwide provides popular choice

Nationwide Building Society

Two Year Tracker Mortgage

Type: Tracker mortgage

Tracker term: Two years

Tracker rate: Up to 95% of valuation 0.54% above Bank of England base rate, up to 90% of valuation 0.04% above Bank of England base rate

Payable rate: Up to 95% of valuation 5.29%, up to 90% of valuation 4.79%

Minimum loan: 1

Maximum loan: Up to 95% of valuation subject to a maximum of 200,000, up to 90% of valuation subject to a maximum of 300,000, up to 85% of valuation subject to a maximum of 400,000, up to 80% of valuation subject to a maximum of 700,000, up to 75% of valuation subject to a maximum of 1m, up to 60% of valuation subject to no maximum

Income multiples: Based on affordability calculation and credit score

Conditions: Free legal fees and valuation for remortgages

Flexible features: Overpayments up to 500 a month, underpayments, payment holidays, lump sum withdrawals, interest calculated daily

Arrangement fee: 389

Redemption fee: 2% of mortgage balance in year one, 1% in year two

Introducers fee: Subject to negotiation

Tel: 0800 302010

Nationwides two year tracker mortgage offers a rate of the Bank of England base rate plus 0.54 per cent for loans up to 95 per cent of valuation and Bank of England base rate plus 0.04 per cent for loans up to 90 per cent of valuation.

Brian Pack Financial Services proprietor Brian Pack says: “As tracker rates are becoming very popular this is a good time to introduce a new range of tracker rates. The current payable rate of 4.79 to 5.29 per cent is fairly competitive, together with the major asset of Nationwides low base rate.”

Considering the attractiveness of the redemption terms, Pack feels the early redemption fees are average and likes the fact that they do not overhang the two-year term. He also regards the negotiable introducers fee as average.

However, the arrangement fee gets the thumbs down from Pack. He says: “The arrangement fee of 389 is a little high, but the trend is towards higher product fees.”
Although Pack highlights five or six other lenders with trackers equal to the Nationwide product, he thinks Nationwide will be better in the long run with its low base rate. He concludes: “Nationwide is always in my top five lenders with its low base rates and normally good service.”

BROKER RATINGS

Suitability to market: Good
Flexibility: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average

Overall 8/10

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