Nationwide cuts first time buyer mortgages by 0.70%

Society reduces 90% LTV loans by between 0.50% and 0.70% and cuts others by up to 0.40%

03 December 2012

In its fourth wave of rate reductions in less than two months, Nationwide Building Society is once again cutting its fixed and tracker mortgage rates across all LTV tiers, effective from Tuesday 4 December.

The largest rate reductions will be applied to its two and three year 90% LTV mortgages, helping home movers with smaller deposits. These high LTV mortgage rates will be reduced as follows:

  • Two year fixed rates will be reduced by 0.70%, now available from 4.49% (4.39% for existing customers)
  • Three year fixed rates will be reduced by 0.60% ,now available from 4.69% (4.59% for existing customers)
  • Five year fixed rates will be reduced by 0.50% , now available from 4.99% (4.89% for existing customers)

Other fixed and tracker rates will be reduced by up to 0.40%.

Tracie Pearce, Nationwide’s head of mortgages, said: "We’ve cut our rates a number of times over the last few weeks and not just for those with a large deposit. This time, we will continue to make reductions across the board, but our largest cuts are on loans with an LTV of 90 per cent.

"It’s a tangible demonstration of how we are utilising the Funding for Lending Scheme to reduce rates for customers at both ends of the LTV spectrum.

"We hope it gives first time buyers and other borrowers the boost they need to get the mortgage and home that they are looking for.

"The message is very clear – Nationwide is open for business"

As a result of the changes, new rates include:
Two-year fixed rate available at 4.49% (90% LTV) for new borrowers (4.39% for existing borrowers)

  • £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

Two-year fixed rate available at 2.59% (60% LTV) for new borrowers (2.49% for existing borrowers)

  • £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
  • Free standard legal work and free standard valuations for remortgages

Three-year fixed rate available at 2.79% (60% LTV) for new borrowers (2.69% for existing borrowers)

  • £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
  • Free standard legal work and free standard valuations for remortgages

Notes to editors:

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 selected homebuyers (dependent on product choice) 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.
        • Save to Buy customers.
    • 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/account_benefits.htm

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, ISAs and personal loans. Nationwide has around 15 million customers.

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.