Nationwide reduces Save to Buy mortgage rates at 95% LTV

23 January 2014

  • Nationwide is launching two new 2 year fixed rates at 95 per cent LTV, with rates starting from 4.99 per cent for new customers and 4.89 per cent for its existing mortgage customers
  • Other 95% LTV products reduced by 0.3 percentage points
  • Available to first time buyers and homemovers through the Society’s Save to Buy scheme, as well as its existing mortgage customers moving home
  • Effective from Friday 24 January

From Friday January 24, Nationwide Building Society is supporting first time buyers and home movers with smaller deposits by launching two new 2 year fixed rates at 95 per cent loan to value (LTV). The rates of 4.99 per cent with a £900 product fee and 5.39 per cent with no product fee are for customers using the Society’s Save to Buy scheme or its existing mortgage customers moving home or wishing to switch products.

With Nationwide mortgages, first time buyers receive a £500 discount on the product fee for all mortgages with a £900 product fee. Existing Nationwide mortgage customers moving home or switching products benefit from an additional 0.10 per cent rate reduction for new applications.

Main Details:

  • New 4.99 per cent two year fixed rate up to 95 per cent LTV with £900 product fee (4.89 per cent for existing Nationwide mortgage customers)
  • First time buyers pay a reduced product fee of £400
  • Save to Buy customers could earn a cashback amount of up to £1000, dependent on the level of their savings
  • Non-refundable booking fee of £99 is payable on reservation
  • New 5.39 per cent two year fixed rate up to 95 per cent LTV with no product fee (5.29 per cent for existing Nationwide mortgage customers)
  • Save to Buy customers could earn a cashback amount of up to £1000, dependent on the level of their savings
  • Non-refundable booking fee of £99 is payable on reservation

Tracie Pearce, Head of Group Mortgages at Nationwide, said: “These new products at 95 per cent LTV are further evidence that Nationwide is strongly committed to playing a leading role in the financing of the housing market, by supporting both first time buyers and home movers. We enable homebuyers with smaller deposits to access very competitive rates - nearly one in four of the mortgages we provide are to first time buyers.”

Also effective from Friday 24 January, all other products at 95 per cent LTV will be decreased by 0.3 percentage points.

Notes to Editors:

  • The new Save to Buy mortgage products are available through Nationwide’s branches only. For existing mortgage customers moving home, the products are available through all channels

Key features of Nationwide’s fixed and tracker mortgage product range for new applications

1. Flexibility:

  • Overpayments (maximum of 10% of the initial amount borrowed per annum on fixed and tracker mortgage deals).
  • Apply for a Further Advance, the additional borrowing facility.

2. Free Standard Valuation:

  • No standard valuation fees for homebuyers (on Flexclusive products only*) or for those who are remortgaging.

3. Free standard legal fees for house purchase (on Flexclusive products only*) 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.

4. Cashback is payable one month after completion of the mortgage

5. Maximum LTV:

  • Lending above 85.01% is available on 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 (rates are unchanged at 24.01.14).
  • 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).

6. 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 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.

7. 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 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%
  • Two-year tracker rate mortgage: 2.5%
  • Three-year tracker rate mortgage: 3%

*To get access to our range of Flexclusive offers you 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 switch to us (from a non-Nationwide account) using our Current Account Switch Team or have done so in the last 4 months; or
  • hold a FlexDirect or FlexPlus account.

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.

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