Nationwide Makes Newbuy Available To More Builders

03 April 2012

Nationwide Building Society today confirms that its NewBuy multi user cell1 is open for business, meaning more builders will now be able to offer their properties for sale under the new scheme.

NewBuy, launched on 12 March 2012, was initially concentrated on a limited number of lenders and builders. Since the launch, the scheme has continued to expand and Nationwide has entered into additional arrangements with builders Linden and Crest Nicholson. By launching its multi user cell today, Nationwide is opening up the scheme to a wider range of lower volume builders, with Fairview New Homes being the first.

Notes to editors:

  • 1To enable smaller firms to access the schemes, multi user cells enable several builders to bundle their cases together to enable them to achieve the appropriate numbers required.
  • For further details on the NewBuy scheme visit www.communities.gov.uk/housing/homeownership/newbuy
  • NewBuy available for mortgages of between 90.01% and 95% LTV
  • Maximum loan value of £250,000
  • Outside the NewBuy scheme, Nationwide has a maximum LTV of 85% for new-build houses and 75% for new-build flats
  • Applications are required for all products. Further details of terms and conditions are available on request.
  • Mortgages are subject to underwriting criteria.

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.
  • 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.

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