Nationwide in new mortgage launch

Nationwide Building Society has announced a new mortgage deal with a lower rate over five years.

The institution is introducing a new deal which is fixed for the period at 5.63 per cent, a cut from the previous offering of 5.85 per cent, Citywire reports.

It is also cutting the rate on its 25-year fixed mortgage from 6.34 per cent to 5.98 per cent.

Both mortgages come with an arrangement fee of £599.

Divisional mortgage director Matthew Carter said: "Recent volatility in the financial markets and uncertainty over the outlook for the immediate future, make it an ideal time for borrowers to consider taking a longer-term fixed rate mortgage."

The chances that the Bank of England may reduce interest rates in November appear to have diminished following comments by monetary policy committee member Kate Barker.

Speaking to the Guernsey Press and Star on a visit to the Channel Islands, she suggested little had changed in the economy since rates were last raised in July.

She told the paper: "We [the monetary policy committee] are asking ourselves if things are so different from August and do we actually have to cut rates?"

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