Nationwide cuts fast

NATIONWIDE was the first lender to announce a mortgage cut following the 0.5 per cent reduction in base rates this week. Its variable rate falls 0.25 per cent to 7.74 per cent.

It also launched a new range of fixed mortgages with a two- year fix at 5.5 per cent. First-time buyers get the same two-year deal at 5.25 per cent. Three-year loans for all are fixed at 6.45 per cent.

The rates are available on repayment or endowment loans. Reservation fees are pounds 95 for the two-year first-timers' loan, pounds 200 for others. The application fee, which covers valuation, is waived for new customers borrowing up to 95 per cent of the price.

Birmingham Midshires has a four-year loan at 6.5 per cent for up to 60 per cent of valuation, or 6.7 per cent for 60-90 per cent loans. The arrangement fee is pounds 295.

West Bromwich Building Society's 2 per cent discount loan, which lasts for a year, comes with a year's free Sky TV or the waiving of the pounds 245 arrangement fee.

----------------------------------------------------------------- SIX OF THE BEST ----------------------------------------------------------------- Savings ----------------------------------------------------------------- Type Account Term *0% *25% *40% Min pounds GIB Liberty Life 5 years 6.4 6.4 5.44 50,000 B Soc Birmingham Midshires Instant 7.15 5.36 4.29 100,000 Tessa Hinckley & Rugby 5 years 8.05 8.05 8.05 25 *Compounded annual rate except for GIB (guaranteed income bond) ----------------------------------------------------------------- Source: Chase De Vere 071-404 5766 ----------------------------------------------------------------- Mortgages ----------------------------------------------------------------- Type Source Deal Variable Northern Rock 3.98% discounted rate on 75% loans Fixed BNP 6.99% for five years Capped Royal Bank of Scotland 7.99% on 90% loans for 5 years ----------------------------------------------------------------- Source: John Charcol 071-611 7000 -----------------------------------------------------------------