Nationwide Building Society has announced that it is lowering the cost of its fixed-rate mortgage agreements by up to one percent.
Customers at Nationwide Building Society have been buoyed by news that the company has reduced rates on its fixed-rate mortgages.
From January 21st, two, three and five-year deals will be cheaper at the UK's third-biggest mortgage lender. It follows from an earlier announcement that it had reduced its standard variable rate to 3.5 percent, marking a cut of 0.5 percent - the same as the Bank of England's latest base rate move.
Matthew Carter, divisional director of mortgages at Nationwide, said: "Recent reductions in swap rates have enabled us to cut the price of our fixed-rate mortgage deals. The financial climate remains volatile so we will continue to monitor market conditions, offering lower mortgage rates and deals where it is prudent to do so."
The government has been keen for banks and building societies to begin lending to consumers and businesses, with the property market seen as one area which would benefit. However, while the country's major banks have required another cash injection from the taxpayer in order to encourage them to function normally, Nationwide has had no need of a handout.
As a result of Nationwide's announcement, interest rates on the company's fixed-rate mortgages will vary between 4.39 percent and 7.09 percent, depending on the size and length of the loan.
