Nationwide launches lowest ever fixed rates

10 April 2013

From Wednesday 10 April 2013, Nationwide is reducing all of its rates at 60 and 70 per cent loan to value (LTV) by 0.10 percentage points. These reductions mean Nationwide is now offering its lowest ever fixed rate mortgages.

Key highlights include:

  • New 2.24% two-year fixed rate up to 60% LTV with £900 fee (2.14% 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 legal fees or £250 cashback
    • Two-year tracker up to 60% LTV with £900 fee available at same rates
    • A non-refundable booking fee of £99 is payable on reservation
  • New 2.49% three-year fixed 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 legal fees or £250 cashback
    • Three-year tracker up to 60% LTV with £900 fee available at same rates
    • A non-refundable booking fee of £99 is payable on reservation
  • New 2.89% five-year fixed rate up to 60% 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 legal fees or £250 cashback
    • A non-refundable booking fee of £99 is payable on reservation
  • New 2.49% Flexclusive four-year fixed rate up to 60% LTV with £900 fee (2.39% for existing borrowers)
    • First time buyers pay a reduced fee of £400
    • All house purchase and remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
    • A non-refundable booking fee of £99 is payable on reservation
    • Mortgage available to main FlexAccount, FlexDirect or FlexPlus current account customers

Tracie Pearce, Nationwide's head of mortgages, said: "I'm pleased to announce that we have reduced rates on all fixed rates and tracker rates for those customers with at least a 30 per cent deposit.

"These latest reductions mean Nationwide is now offering the lowest fixed rate mortgages in the Society's history.

"The cuts of up to 0.10 percentage points could benefit those buying a house or remortgaging. In particular, our three year fixed rate mortgages available to 60 per cent LTV at 2.49 per cent are now among the lowest rates in the market."

Notes to editors:

To be eligible for a Nationwide Flexclusive mortgage, customers must either:

  • Hold a FlexAccount with a Visa debit card (not cash card or cash card+) and have been paying in £750+ a month (excluding internal transfers) for the last 3 months; or
  • Complete an account transfer to us (from a non-Nationwide account) using our Account Transfer Service or have done so in the last 4 months; or
  • Hold a FlexDirect or FlexPlus account

Key features of the fixed and tracker mortgage product range for new applications

  • Flexibility:
    • Overpayments (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 (on Flexclusive products only) or for 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 purchases in Northern Ireland.
  • Cashback is payable one month after completion
  • Maximum LTV:
    • Lending from 85.01% to 90% LTV is available on fixed rate mortgages.
    • Lending above 90% LTV is available on three, four and five-year fixed rate mortgages. Lending above 90% LTV is available on two-year fixed deals via the NewBuy scheme
    • 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.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Main FlexAccount, FlexDirect and FlexPlus customers benefit from exclusive mortgage offers, including the popular Flexible Mortgage. For eligibility criteria:
http://www.nationwide.co.uk/current_account/

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 a 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.