Nationwide's sell-out mortgage
Friday, 08 Feb 2008 10:03
Nationwide is promoting its 25-year fixed-rate mortgage after the Chancellor of the Exchequer called for more long-term products to be rolled out.
In a speech on Wednesday Chancellor Alistair Darling revealed plans to boost the availability of fixed-rate mortgages which run for longer periods in a bid to improve the property market and conditions for buyers.
Mortgage lender Nationwide welcomed the proposals – due to be unveiled officially at next month's budget – and revealed its own 25-year product sold out in just five weeks when it was launched last year.
It is now, however, a regular feature in its range.
A spokesperson for Nationwide said: "The society's experience is the 25-year fixed-rate has a place in the market and offers long-term stability for borrowers who want to protect themselves against fluctuations in interest rates."
The mortgage, which is portable so can be taken with buyers as they progress up the property ladder, has a rate of 5.98 per cent.
There are no early repayment charges (ERC) after ten years, but the ERC is three per cent up until then. Customers will need to pay a reservation fee of £599.
It also allows borrowers to make overpayments of £500 per month and take "payment holidays".