Nationwide announces fourth mortgage rate cut in January

30 January 2013

With effect from Wednesday 30 January, Nationwide Building Society is cutting its tracker rates by up to 0.50 percentage points and selected fixed rates by up to 0.30 percentage points. It means the Society will offer a three-year fixed rate for new borrowers with a 40% deposit at 2.59 per cent, with rates for new customers with a 25% deposit now starting from 2.89 per cent.

Existing borrowers will continue to benefit from rates 0.10 percentage points lower than new business rates.

Key highlights include:

  • New 2.59% three-year fixed rate up to 60% LTV with £900 fee (2.49% for existing borrowers)
    • First time buyers pay a reduced fee of £400
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legals or £250 cashback, payable one month after completion
    • A non-refundable booking fee of £99 is payable on reservation
  • New 2.89% two-year fixed rate up to 75% LTV with £900 fee (2.79% for existing borrowers)
    • First time buyers pay a reduced fee of £400
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legals or £250 cashback, payable one month after completion
    • A non-refundable booking fee of £99 is payable on reservation
  • New 2.49% two-year tracker rate up to 60% LTV with £900 fee (2.39% for existing borrowers)
    • First time buyers pay a reduced fee of £400
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legals or £250 cashback, payable one month after completion
    • A non-refundable booking fee of £99 is payable on reservation

Tracie Pearce, head of group mortgages at Nationwide, said: "Nationwide is demonstrating that it really is open for business by announcing its fourth rate cut in January alone.

"These reductions clearly demonstrate our commitment to offer competitive, quality and affordable products to both new and existing customers, at all LTVs."

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 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 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.
    • 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 and five-year tracker 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 and FlexDirect customers benefit from exclusive mortgage offers; including the popular Flexible Mortgage. For eligibility criteria:
http://www.nationwide.co.uk/current_account/why_choose_us/default.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.

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