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Nationwide Offers Competitive Tracker Mortgage Starting at 5.35% for Loans Up to £5 Million

nationwide tracker mortgages
nationwide tracker mortgages

Nationwide is now offering one of the most competitive 2-year tracker mortgages on the market, with an initial rate starting at 5.35%. This tracker product is linked to the Bank of England’s Base Rate + 0.10%, providing a flexible and attractive option for many borrowers.

 

Key Features of Nationwide's Tracker Mortgage

  • Initial Rate: Starts at 5.35%
  • Loan Range: Available for loans from £300,000 up to £5 million
  • Deposit Requirement: Requires a 40% deposit
  • Product Fee: £1,499
  • No Early Repayment Charges (ERCs): Borrowers can make overpayments or repay the mortgage in full at any time without incurring additional charges

 

Understanding Tracker Mortgages

A tracker mortgage is a type of variable rate mortgage that tracks the Bank of England's Base Rate plus a percentage set by the lender for a specific period. After this period, it reverts to the lender’s standard variable rate. If the Base Rate falls, your mortgage payments decrease; if it rises, your payments increase.

 

Benefits of Nationwide's Tracker Mortgage

No Early Repayment Charges (ERCs): This allows borrowers to make overpayments or repay the mortgage in full without additional charges.

Flexibility: Without ERCs, borrowers can remortgage to a potentially lower fixed rate mortgage without facing extra costs, allowing them to adjust their mortgage as their financial circumstances change.

 

Interest-Only Mortgages

Nationwide also offers interest-only mortgage options, subject to specific eligibility criteria:

  • Loan-to-Value (LTV) Ratio: Capped at 60%
  • Loan Amount: Maximum of £5 million
  • Income Requirements: Minimum income of £75,000 for a sole applicant, or £100,000 combined for joint applicants
  • Minimum Equity:
    £300,000 for properties in Greater London
    £250,000 for properties in the Outer South East
    £200,000 for properties in the rest of the UK

 

Representative Example of a Purchase

For a £1 million property with a £600,000 capital repayment mortgage over 25 years:

  • Initial Rate: 5.35% for 2 years, then reverts to Nationwide’s standard variable rate of 7.99%
  • Payments: 24 payments of £3,630.97, followed by 276 payments of £4,565.30
  • Total Amount Repaid: £1,348,745.08 (including the initial loan amount, interest, product fee, final repayment charge, and completion fee)
  • Overall Cost for Comparison: 7.7% APRC representative

 

Why Choose Nationwide's Tracker Mortgage?

Nationwide’s competitive tracker mortgage, with its low starting rate and flexible terms, provides an appealing option for those looking to benefit from potential Base Rate reductions while maintaining the ability to manage their mortgage overpayments and remortgaging without penalty.

 

Get Professional Advice

When seeking a new mortgage, it’s essential to obtain professional advice to explore your options and find the best solution for your circumstances as this is one option available in the market presently.

Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.

Take the first step towards securing your mortgage today.

 

The information contained within was correct at the time of publication but is subject to change.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage.

 

Source: Nationwide for Intermediaries

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