PRODUCT UPDATE - Mortgages

15 March 2012

From Friday 16 March 2012, Nationwide is making changes to its two year fixed rates and all two and three tracker rates for both remortgage and house purchase customers. All three and five year fixed mortgages remain unchanged. The move follows similar changes by other high street lenders.

New rates include:
Two-year fixed rate available at 5.69% (90% LTV)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
  • Product fee-free option available at 6.09%, £99 booking fee will still apply
  • £500 product fee discount for first-time buyers
  • £1,000 cashback towards stamp duty for first-time buyers who hold a Nationwide FlexAccount as their main current account
  • Other rates starting from 3.49% at 60% LTV (£900 product fee, £99 booking fee) are also available

Other rates include:
Five-year fixed rate available at 3.89% (70% LTV)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
  • Product fee-free option available at 4.09%, £99 booking fee will still apply
  • £500 product fee discount for first-time buyers

Notes to editors:

  • 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 and £1,000 cash-back towards stamp duty for first-time buyers who reserve a mortgage with the Society.

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.
  • 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 above 90% LTV is available on two, 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
      • 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 and NewBuy
    • 75% on new build flats and 85% 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%
    • Five-year fixed rate mortgage: 5%
    • Two-year tracker rate mortgage: 2.5%
    • Three-year tracker rate mortgage: 3%

Nationwide Building Society is the world's largest building society and a top-three provider of mortgages and savings in the UK. It is also a major provider of current accounts, credit cards and personal loans. With around 16 million members, Nationwide has a relationship with almost a quarter of the UK population.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the year 2010/11 Nationwide made a strong underlying profit of £276 million - up 30% 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.

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