Nationwide cuts product fees by 50% across five-year fixed rate mortgages

And reduces all remortgage rates by up to 0.20%

02 May 2012

From Wednesday 2 May, Nationwide Building Society is launching a half price product fee offer on its highly competitive five-year fixed rate mortgages, effective immediately. It is also reducing remortgage rates by between 0.10% and 0.20% across the range.

The fee offer means that the usual £900 product fee will be reduced to £450 for those purchasing a new home, remortgage customers and existing customers moving home, and just £200 for first-time buyers (including the existing £500 product fee discount first-time buyers with Nationwide already enjoy).

At the same time, Nationwide is reducing its three-year fixed rate mortgages by 0.10% and reintroducing a 60% Loan to Value (LTV) tier for two-year fixed rate mortgages, with rates starting from just 3.49%. For example:

Five year fixed rate available at 3.99% (up to 70% LTV)

  • £450 product fee (was £900) for house purchase, remortgage and existing customers moving home
  • £200 product fee for first-time buyers (was £400)
  • £99 booking fee (payable upfront and non-refundable)

Three year fixed rate available at 4.79% (up to 85% LTV)

  • £900 product fee for house purchase, remortgage and existing customers moving home
  • £500 product fee discount for first-time buyers
  • £99 booking fee (payable upfront and non-refundable)

The fee discount supplements existing Nationwide service benefits for those moving home including a mortgage application tracking service (with text messages to keep customers up to date), fixed fee conveyancing (with no move, no fee peace of mind), portable mortgages (which customers can take with them when they move home), and online, interactive buying and selling guides. The guides, which are impartial and independent can be found or downloaded at

Tracie Pearce, Nationwide's Head of Group Mortgages, Product & Pricing, said: "Our five-year fixed rate mortgage is currently a very popular product with competitive pricing. The addition of this fee discount means we can provide tangible support to more customers looking to fix their mortgage payments over the longer term. Coupled with our comprehensive service offering, it makes a fixed rate mortgage with Nationwide particularly attractive.

"We recognise that buying a home can seem complicated and costly – particularly for first-time buyers. The combination of this fee discount with our existing first-time buyer discount clearly demonstrates our ongoing commitment to those looking to buy their first home, by considerably reducing their upfront costs."

Notes to editors

  • This offer is available to all borrowers who reserve a mortgage product from 2 May either in branch, via 0800 30 20 10, online or via an intermediary.
  • The offer may be withdrawn at any time.
  • A 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 and £1,000 cash-back towards stamp duty for first-time buyers who reserve selected mortgage products with the Society. For eligibility 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 for house purchase in Northern Ireland.
  • Maximum LTV:
    • Lending above 85% 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.
      • 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.
    • 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%

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.

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.

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.

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