Nationwide cuts mortgage rates

Nationwide has announced it is set to slash the price of some of its fixed-rate mortgage deals in an effort to make them some of the most competitive in the market.

The lender is reducing the five-year fixed-rate deal it offers by £100 to £449 and the 25 year fixed-rate mortgage will now be available from 5.98 per cent.

Matthew Carter, Nationwide’s, divisional director for mortgages, explained that the move to decrease mortgage rates will lay down the gauntlet to their competitors.

He said: "Nationwide’s five year fixed-rate mortgage is lower than that of Halifax, Abbey and Alliance and Leicester and the 25 year fixed-rate is also very competitive.

"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."

The new deals will come into effect on October 26th, according the building society.