Nationwide
2 base rate tracker mortgage
changes as at 10/02/06
Nationwide launched a new 2 year base rate tracker mortgage this week. The rate tracks the Bank of England's base rate at a margin of -0.11% for the first two years of the mortgage term, giving a current rate of 4.39%. The building societies standard variable rate is 5.89%, which is what borrowers are transferred to after two years. This gives an overall APR of 5.8%. There is a £599 reservation fee for this mortgage and to qualify for this rate you need a 10% minimum deposit. On the plus side this mortgage has no overhanging redemption penalty, so you can switch mortgages after two years if you wish.
In addition all of Nationwides' tracker mortgages offer the option to switch to one of their fixed rates at any time without paying early repayment charges on the tracker mortgages. They call this 'Switch and fix'.