Nationwide offers a decade of payment security

New 10 year fixed rate mortgage for those preparing for potential rate rises

28 October 2014

As uncertainty continues around the effects and timing of a potential bank base rate rise, Nationwide Building Society is to offer 10 year fixed rate mortgages for customers who want longer term certainty over the amount of their monthly payments.

From Wednesday 29 October, new customers can fix their payments for the next ten years from 3.49%, while existing customers can do the same from just 3.39% as a result of the Society’s established 0.10% loyalty discount. The competitive £999 arrangement fee for new customers reduces to just £499 for first time buyers, making securing certainty for a first home even more affordable. Fee-free options are also available.

Richard Napier, Nationwide’s Director of Mortgages and Savings, said: “This competitive mortgage range is likely to be particularly attractive to those looking for certainty around their monthly payments over a prolonged period, whether they are first time buyers or those who want to lock in payments against potential future rate increases.

“At Nationwide, we’ve seen significant amounts of customers favouring longer term fixed rate mortgages this year. In September almost a quarter of new reservations were for our five year fixed rate products. Clearly prudent customers want to protect themselves against payment increases and so the introduction of a new ten year fixed rate deal is a logical addition to provide for this trend.”

Key highlights of the 10 year fixed rate deals are:

  • 3.49% up to 70 per cent LTV with £999 fee
    • £0 fee option at 3.59%
    • First time buyers pay a reduced fee of £499
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • 3.94% up to 75 per cent LTV with £999 fee
    • £0 fee at 4.04%
    • First time buyers pay a reduced fee of £499
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • 4.54% up to 85 per cent LTV with £999 fee
    • £0 fee option at 4.64%
    • First time buyers pay a reduced fee of £499
    • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback

In addition, Nationwide is re-introducing a three year fixed rate at 90 per cent LTV with a £999 product fee (£499 for first time buyers) at 4.14% for new borrowers, and 4.04% for existing borrowers.

Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates.

Nationwide also continues to offer its Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers with those of its top six high street competitors and guarantees to offer the lowest comparative rate.

Notes to Editors:

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 where an ERC applies to the product. Where a product is not subject to an ERC, there is no maximum overpayment allowance).
  • 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: 90%

  • 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
  • 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.

Early repayment charges for fixed rate and tracker mortgages
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
10 year fixed 7% 7% 7% 7% 6% 5% 4% 3% 2% 1%

*To get access to our range of Flexclusive offers customers must either:

1. 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

2. hold a FlexDirect or FlexPlus account.

Loyalty Rate Mortgages:

  • Nationwide will compare like for like products against the comparable LTV tier and fee range of the Nationwide’s top six competitors. Based on CML gross lending figures, these are currently NatWest/ RBS, Halifax, Santander, HSBC, Barclays / Woolwich, Lloyds. These lenders are fixed for the year and will be reviewed in September 2015.
  • To qualify for the Loyalty Rate Mortgages promotion, mortgages have to be like for like, i.e. have the same product term and comparable arrangement/product/booking/application fee. Competitor products are those available to all customers through lenders’ retail channels and will exclude deals through subsidiaries, intermediary exclusives, Buy to Let mortgages, those linked to schemes, such as Help to Buy and those with fees greater than £1000.
  • If a competitor’s mortgage deal is lower than the Nationwide equivalent, that product will be re-priced on the following Wednesday to be lower by at least 0.01%. This process will be repeated each week.
  • The Loyalty Rate Mortgages promotion is ongoing, but can be withdrawn at any time.

About Nationwide Building Society

Nationwide is the world's largest building society as well as the second largest savings and mortgage provider 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, via the mobile app, on the telephone, internet and post. The Society has around 17,000 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.

Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 17,000 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.