A new lifetime
tracker mortgage will be available from
Nationwide Building Society from tomorrow.
The
mortgage lender says the new
mortgage will stay 0.39 per cent above the Bank of England base rate for between five and 40 years.
Monthly overpayments of up to £500 are allowed, as are payment holidays. A reservation fee of £199 can be added to the mortgage or paid upfront.
"Borrowers are becoming more financially astute and the benefits of a longer term
mortgage deal are more obvious," says Steve Clode, the divisional director at Nationwide.
"The opportunity to take advantage of a competitive deal for the lifetime of the mortgage is a real bonus and gives borrowers the opportunity to
remortgage and relax."
Mortgage borrowers with tracker
mortgages reserved after January 10th also have the option of moving to a
fixed mortgage rate deal without incurring early repayment charges with the mortgage lender's new switch and fix facility.
This facility could give mortgage holders confidence when they take out their tracker mortgage that they can change to a mortgage deal that better suits their lifestyle in case their circumstances change, according to the society.
