Nationwide announces market-leading 4-year Fixed Rate Mortgage

Another example of rewarding relationships for main FlexAccount customers

Nationwide is introducing a new variation on its existing four-year Flexclusive fixed rate mortgage - for those customers who hold a FlexAccount with the Society as their main current account – with a market-leading rate of 2.89% for loans up to 60% LTV. Free valuation and standard legal services are also included. The mortgage is available for both house purchase and remortgage customers and comes with a product fee of £900.

At the same time, its existing range of four-year Flexclusive fixed rate products without product fees are being reduced by 0.10% and a new 60% LTV tier at 3.19% is being introduced.

The changes come into effect from Wednesday 1 August and follow a range of fixed and tracker rate reductions announced last week.

Tracie Pearce, head of group mortgages, products and pricing, said: “For Nationwide, market-leading headline rates aren’t just about attracting new customers. We want to ensure that those who have the deepest relationships with the Society benefit most, and are rewarded for their loyalty. It’s yet another example of being ‘on your side’ and is at the heart of everything we do.”

Nationwide’s mortgage range now includes:
Flexclusive four-year fixed rate available at 2.89% (up to 60% LTV)

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

Flexclusive four-year fixed rate available at 3.19% (up to 60% LTV)

  • £0 product fee for house purchase, remortgage and existing customers moving home
  • £99 booking fee (payable upfront and non-refundable)
  • Free standard legals and valuation

The offer is also available to Save to Buy customers holding a main FlexAccount, who have been saving for at least six months to accrue a deposit in a Save to Buy savings account.

Notes to editors:

  • This offer is available to main FlexAccount holders who reserve a mortgage product from 1 August 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  • The offer may be withdrawn at any time.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:

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 above 85% LTV is available on two, 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.
  • 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%
  • 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%

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 members.

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.

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.

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