Nationwide cuts NewBuy rates

04 January 2013


From 4 January 2013, Nationwide Building Society is cutting the rates on its NewBuy and MI New Home mortgage range by up to 0.45 per cent and introducing a new two-year deal - all with no product fees.

The Society currently offers borrowers, who buy a new-build house or flat in England or Scotland with a builder that is registered under these schemes, the option of a three or five-year fixed rate mortgage at 95 per cent loan to value. From 4 January 2013, the Society is adding a two-year deal to the range. In addition, all NewBuy and MI New Home mortgages will no longer include a £900 product fee, while the maximum loan increases from £250,000 to £350,000. A non-refundable £99 booking fee is payable upfront.

New rates include:

Two-year fixed rates, no product fee

  • 4.34 per cent for existing customers
  • 4.44 per cent for first time buyers and those moving home

Three-year fixed rates, no product fee

  • 4.44 per cent for existing customers
  • 4.54 per cent for first time buyers and those moving home

Five-year fixed rates, no product fee

  • 4.64 per cent for existing customers
  • 4.74 per cent for first time buyers and those moving home

The NewBuy products are only currently available via intermediaries.

Andrew Baddeley-Chappell, head of mortgage strategy and policy at Nationwide, said: "These cuts are further evidence of Nationwide's commitment to support the NewBuy and MI New Home schemes. Nationwide is once again demonstrating that it is open for business.

"These schemes aim to address the growing gap in housing provision in Britain by helping to increase access to lower deposit mortgages within the new-build sector. They help keep Britain's property market moving and it is another example of how Nationwide is 'On Your Side'."


Notes to editors:

  • For further details on the NewBuy scheme visit
  • NewBuy available for mortgages of between 90.01 per cent and 95 per cent LTV
  • Maximum loan value of £350,000 for NewBuy and £237,500 for MI New Home
  • Outside the NewBuy scheme, Nationwide has a maximum LTV of 85 per cent for new-build houses and 75 per cent 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 and a 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 per cent above the Bank of England base rate, while 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 per cent
    • Three-year fixed rate mortgage: 4 per cent
    • Five-year fixed rate mortgage: 5 per cent
    • Two-year tracker rate mortgage: 2.5 per cent
    • Three-year tracker rate mortgage: 3 per cent

About Nationwide Building Society

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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