Nationwide accepts Help to Buy mortgage applications in Scotland

30 September 2013

Nationwide Building Society is accepting mortgage applications from borrowers looking to participate in the Scottish Government’s Help to Buy equity loan scheme from Monday September 30.

Equity loans will be available to all home buyers in Scotland purchasing a new-build property who meet the Help to Buy (Scotland) scheme criteria, including first time buyers and home movers, purchasing their only property in Scotland up to a maximum value of £400,000.

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

Under the Help to Buy (Scotland) scheme the equity loan will be interest free.

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

"It is another way that Nationwide customers in Scotland 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 competitive core range of products, including:

  • 2.34% two-year fixed or tracker rate up to 75% LTV with £900 product fee (2.24% for new applications from existing Nationwide mortgage customers)
    • First time buyers pay a reduced product fee of £400
    • A non-refundable booking fee of £99 is payable on reservation
  • 2.64% three-year fixed rate up to 75% LTV with £900 product fee (2.54% for new applications from existing Nationwide mortgage customers)
    • First time buyers pay a reduced product fee of £400
    • A non-refundable booking fee of £99 is payable on reservation
  • 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 of the initial amount borrowed per annum).
  • Apply for a Further Advance, the additional borrowing facility.
  • 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 from a BMR, it is not possible to switch back to the BMR at a later date.
  • All mortgages reserved on or before March 3, 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 cent 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%
  • 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 one of the largest savings providers 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 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.

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