Nationwide accepts Help to Buy mortgage applications

28 May 2013

Nationwide Building Society will accept mortgage applications from borrowers looking to participate in the Government's Help to Buy - equity loan scheme from Wednesday, May 29.

The scheme is an extension of the FirstBuy scheme (which has now ended), with equity loans available to all home buyers - first time buyers and home movers - purchasing their only property in England up to a maximum value of £600,000.

Buyers must have a five per cent deposit, based on the purchase price. The property is part financed (up to 20 per cent and a minimum of 10 per cent) by an equity loan from the Homes and Communities Agency.

Tracie Pearce, head of group mortgages at Nationwide, said: "We are accepting Help to Buy applications as we are keen to support the Government's efforts in helping the mortgage market to move forward."

"It is another way that Nationwide customers can access great deals to help them onto - or move up - the property ladder."

Customers wishing to enter the scheme will have access to Nationwide's highly competitive core range of products, including:

2.54% two-year fixed rate up to 75% LTV with £900 fee (2.44% for existing borrowers)
First time buyers pay a reduced fee of £400
A non-refundable booking fee of £99 is payable on reservation

2.94% two-year fixed rate up to 75% LTV with £0 fee (2.84% for existing borrowers)
A non-refundable booking fee of £99 is payable on reservation

2.64% three-year fixed rate up to 75% LTV with £900 fee (2.54% for existing borrowers)
First time buyers pay a reduced fee of £400
A non-refundable booking fee of £99 is payable on reservation

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

Notes to editors:

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

Flexibility
Overpayments (no minimum; maximum of 10 per cent a year).
Apply for a Further Advance, the additional borrowing facility.

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 mortgages

Throughout the deal period, a percentage of the outstanding loan is payable as detailed below. Overpayments of up to 10% per annum 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%
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.

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.

Customers can manage their finances in a 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.