New rate fixed at Nationwide

A NEW fixed-rate mortgage was launched by Nationwide this week. The rate is set at 8.95 per cent for the first year and 9.95 per cent for the following two years. The deal replaces a similar mortgage with a rate of 9.95 per cent, which was withdrawn last week, and includes a year's mortgage cover in the event of unemployment or illness. The new mortgage is being offered only to existing customers, including those with savings or cheque accounts, mortgages or insurance policies. Nationwide sees it as a way to maintain customer loyalty.