Nationwide Building Society has announced it will be launching a new two year tracker mortgage available from 4.99% with a reservation fee of £995, effective from 1 December 2008.

Matthew Carter, divisional director of mortgages at Nationwide, said: “We are pleased that we are in a position to re-enter the tracker mortgage market with a new two year deal.”

The new tracker mortgages will have a 4.99% rate on a loan to value of 60% and there will be a 5.19% on a loan to value of 70%.

Details of the mortgage include:
* lexibility:
o Overpayments (no minimum, maximum of £500 per month)
o Underpayments and draw downs up to limit of overpayment reserve
o Apply for Further Advance, the additional borrowing facility.
* Interest is calculated on a daily basis.
* No compulsory insurance.
* Valuation fee varies based on purchase price of property and not product chosen.
* Valuation fees are non-refundable for home buyers and home movers.
* No standard valuation fees or standard legal fees for borrowers who are remortgaging.
* Maximum borrowing of 75% (including new build houses and flats). The mortgage rate available is 5.19% on a deal with an LTV of 61-75%.
* Maximum borrowing of £500,000 for new borrowers and £1 million for existing borrowers.
* Monitor application via text or email update.
* If the Bank of England Base Rate is 1% or less during the tracker period, the rate the borrower pays will be 1% plus the agreed set percentage above the Bank of England Base Rate. This means that the rate the borrower pays will never go below 1% plus the additional % rate of their tracker mortgage. This is known as the tracker floor.

Reservation fees: Nationwide’s two year tracker mortgage deal requires applicants to pay a reservation fee. This can be paid upfront or added to the loan (adding the fee to the loan will increase the overall cost).
Existing Nationwide borrowers switching to a new Nationwide tracker mortgage deal will receive a discount of up to £696 on their reservation fee (they pay £299 instead of £995).