12 January 2012
On Thursday 12 January, Nationwide is launching a new, competitive 2 year fixed rate at 90% LTV for first time buyers, home movers and existing customers moving home on Thursday 12 January. The Society is offering a rate of 5.29% with a £900 product fee or 5.69% with no product fee.
The Society will also make a number of other pricing changes on selected fixed and tracker mortgage rates with effect from Thursday 12 January 2012.
Further details can be found below.
Martyn Dyson, head of mortgages at Nationwide, said: “We are continuing our support for the housing market by extending our range of 90% LTV mortgages to now include 2 year fixed rate products. It means we offer a comprehensive fixed rate range at 90% LTV including two, three and five year fixed rate deals, offering some of the best low deposit deals currently available.
The Society continues to offer a range of 95% LTV mortgages which are available to first-time buyers through Save to Buy and for existing customers when moving home or switching.”
New rates include:
Two-year fixed rate available at 5.29% (90% LTV)
- £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
- Fee free option available at 5.69%, £99 booking fee will still apply
- £500 product fee discount for first-time buyers
- Other rates starting from 2.99% at 60% LTV (£900 product fee, £99 booking fee) are also available
Other mortgage deals available include:
Five-year fixed rate available at 3.59% (70% LTV)
- £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase, remortgage and existing customers
- Fee free option available at 3.79%, £99 booking fee will still apply
- £500 product fee discount for first-time buyers
- Other rates available at 75% LTV and above are available
Notes to editors:
- Other changes include a 0.15% increase in 2 and 3 year tracker rates, a 0.10% increase in 5 year tracker rates, a 0.10% increase in its 5 year fixed rate mortgages above 85% LTV and a 0.10% increase in its 2 year fixed rates above 60% LTV.
- 2 year fixed rates below 60% LTV as well as all 3 year fixed rates and 5 year fixed rates below 85% LTV remain unchanged.
- The £99 booking fee is payable upfront and non-refundable.
- Applications are required for all products. Further details of terms and conditions are available on request.
- Mortgages are subject to underwriting criteria.
- Main FlexAccount customers benefit from an exclusive mortgage offer; the popular Flexible Mortgage. Eligibility criteria
Key features of the fixed and tracker mortgage product range for new applications
- Overpayments (no minimum; maximum of £500 per month on fixed and tracker mortgage deals).
- Apply for a Further Advance, the additional borrowing facility.
- Valuation fee:
- Varies based on purchase price of property and not product chosen.
- Non-refundable for home buyers and home movers.
- No standard valuation fees or standard legal fees for borrowers who are remortgaging.
- Free legal fees for house purchase cover the conveyancer’s professional charges relating to the house purchase only when using one of our panel legal firms. The customer will be liable for some additional fees relating to the disbursements, e.g. Land Registry fees and local authority searches. Due to Northern Irish law, Nationwide is unable to offer free legal fees in Northern Ireland.
- Maximum LTV:
- Lending between 85% and 90% LTV is available on two, three and five-year fixed rate mortgages
- Lending above 90% LTV is available on three and five-year fixed rate mortgages.
- 95% LTV mortgages are available to existing Nationwide mortgage borrowers switching at the end of their current deal or moving home and Save to Buy customers.
- 90% LTV mortgages are available to existing Nationwide mortgage borrowers switching at the end of their current deal or moving home, first-time buyers and home movers.
- First-time buyers can access 95% LTV products through Save to Buy
- 75% on new build flats and 85% on new build houses.
- Base Mortgage Rate
- Any mortgage products reserved on or before 29 April 2009 will revert to the Base Mortgage Rate (BMR). If the borrower chooses to switch to a new Nationwide mortgage product, the new product will currently revert onto our Standard Mortgage Rate (SMR).
- Both are variable rates which we may vary in accordance with our mortgage terms and conditions. However, the BMR is guaranteed to be no more than 2% above the Bank of England base rate, whilst the SMR has no upper limit or cap. If the borrower chooses to switch to a new product, it is not possible to switch back to the BMR at a later date.
- Standard Mortgage Rate
- Mortgage products reserved on or after 30 April 2009 revert to the Standard Mortgage Rate (SMR).
- The SMR is a variable rate which may vary in accordance with Nationwide’s mortgage terms and conditions.
- All mortgages reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility.Any mortgages reserved after this date will no longer include these facilities.
- If the borrower is currently letting their property they will be unable to switch to a new mortgage deal and their mortgage will automatically revert to the Nationwide variable rate as stated in their mortgage offer.
- Early repayment charges for fixed rate and tracker mortgages
Throughout the deal period, a percentage of the outstanding loan is payable as detailed below. Overpayments of up to £500 per month are permitted without the need to pay an early repayment charge.
- Two-year fixed rate mortgage: 3%
- Three-year fixed rate mortgage: 4%
- Five-year fixed rate mortgage: 5%
- Two-year tracker rate mortgage: 2.5%
- Three-year tracker rate mortgage: 3%
About Nationwide Building Society
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards and personal loans. Nationwide has around 15 million members.
Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the half year ending September 2011 Nationwide made a strong underlying profit of £172 million – up 17% from the previous year. Its strong financial performance and prudent business model means that Nationwide is included in Global Finance magazine’s Top 50 Safest Banks in the World.
Nationwide has around 700 branches and customers can manage their finances in branch, on the telephone, internet and post. The Society has around 16,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.