Nationwide cuts rates across its fixed rate and tracker mortgage ranges

10 October 2012

Nationwide Building Society is reducing rates across the majority of its fixed rate mortgages by up to 0.40% and across the majority of tracker mortgages by up to 0.20%, effective from Thursday 11 October.

The reductions provide a number of new rates, including:
Two-year fixed rate available at 4.29% (85% LTV) for new customers (4.19% for existing customers)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable)
  • £400 discounted product fee for first-time buyers
  • No product fee rates are also available

Five-year fixed rate available at 3.49% (70% LTV) for new customers (3.39% for existing customers)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable)
  • £400 discounted product fee for first-time buyers
  • No product fee rates are also available

Flexclusive four-year fixed rate available at 2.99% (70% LTV) for those customers who hold a FlexAccount with the Society as their main current account

  • £900 product fee, £99 booking fee (payable upfront and non-refundable)
  • £400 discounted product fee for first-time buyers
  • No product fee rates are also available

Tracie Pearce, head of group mortgages, said: "These reductions clearly demonstrate our commitment to offer competitive, quality and affordable products to new and existing customers, at all LTVs, not just for those with the largest deposits."

Key features of the fixed and tracker mortgage product range for new applications

  • Flexibility:
  • Overpayments (no minimum; maximum of £500 per month on fixed and tracker mortgage deals).
  • Apply for a Further Advance, the additional borrowing facility.
  • Free Standard Valuation:
  • No standard valuation fees for homebuyers or those 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 for house purchase in Northern Ireland.
  • Maximum LTV:
  • Lending from 85.01% to 90% LTV is available on two, three, four and five-year fixed rate mortgages.
  • Lending above 90% LTV is available on three, four 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.
  • Save to Buy customers.
  • NewBuy 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 and NewBuy.
  • Maximum 75% LTV on new build flats and 85% LTV on new build houses (90.01% to 95% LTV for approved NewBuy housing providers).
  • 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%
  • Four-year fixed rate mortgage: 4%
  • Five-year fixed rate mortgage: 5%
  • Two-year tracker rate mortgage: 2.5%
  • Three-year tracker rate mortgage: 3%
  • The Flexclusive four-year fixed rate is available to main FlexAccount holders who reserve a mortgage product either in branch, via 0800 30 20 10 or online.
  • The offer may be withdrawn at any time.
  • A £99 non-refundable booking fee may apply.
  • 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 exclusive mortgage offers; including the popular Flexible Mortgage. For eligibility criteria: http://www.nationwide.co.uk/current_account

About Nationwide Building Society
Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.

Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 15,000 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.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the year ending April 2012 Nationwide made a strong underlying profit of £304 million – up 10% from the previous year.

Please note: If you are a customer looking for information on our products and services, please visit the main website.