Mortgages Section

The Nationwide Comes Up With A Great Flexible Mortgage

January 2005

When it comes to treating customers fairly the Nationwide Building Society usually gets top marks. Perhaps this is because it is still a Building Society owned by its members and not by demanding and greedy shareholders ever piling the pressure on management to make high profits normally at the expense of fleecing the clients.

The Nationwide has recently come up with a pretty good deal called the Lifetime Tracker Mortgage (see website address under 'Useful Info'). One of the key points about this mortgage is that it offers consumers flexibility, and that's always a bonus with any financial product as it gives the client options.

The Lifetime Tracker Mortgage

• Tracks the Bank of England base rate
• Maximum term is 40 years
• The flexible nature means that borrowers can switch to a fixed rate deal at anytime

How Does It Work

• Priced at 0.39% above base rates, as of writing this means 4.89%
• Clients wishing to borrow more than 90% will have to pay 0.69% over base rates
• If you choose to switch to a 2 or 3 year fixed deal a fee of £399 is levied
• If switching to a 5 or 10 year fix then the fee is just £199

Advantages/Disadvantages

• If you believe that interest rates will fall the built in offer of switching to a fixed rate mortgage at anytime means the Nationwide's deal is good because it saves money on fees and exit penalties
• Free valuation and legal fees are included as well as a very reasonable £99 fee should you wish to remortgage
• However, if you take out the tracker now and then want to switch to a fixed you can only do this with the Nationwide, their interest rates may not be the most competitive at that time, although we'd suggest that they won't be that far off

Summary

Another good product from the Nationwide and one that is easy to understand as well.

See Also

• Nationwide Building Society
• 50% Of Mortgages Holders Are Paying Far Too Much
• Find's Mortgage Lender links