Nationwide building society has announced the launch of a new mortgage product aimed at those who “prefer a shorter term deal”.
The two-year tracker mortgage is available from Wednesday March 28th and is available at a starting rate of 4.49 per cent ñ “one of the lowest on the market”, according to the building society.
The mortgage allows the borrower to switch to a fixed rate product at any time without penalty.
According to the building society, this makes it “ideal for those borrowers who may wish to protect themselves against potential interest rate rises”.
Stuart Bernau, Nationwideís executive director, says the mortgage “would suit borrowers with larger mortgages and offers great value compared to similar products in the market”.
Nationwide customers can get a £200 discount on the reservation fee of £1,999 that applies to this mortgage and which can be paid in full when the mortgage is taken out or as part of the repayments.
In the last meeting of the Bank of England’s monetary policy committee, no change was made to the base rate of interest, which currently stands at 5.25 per cent.
However, some analysts are certain that there will be another increase before the end of the year, taking the base rate up to 5.5 per cent or higher.
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