Nationwide re-prices mortgage range to help first time buyers with smaller deposits

07 May 2014

With effect from Thursday 8 May 2014, Nationwide Building Society is re-pricing its mortgage range, reducing rates by up to 0.20% at 80, 85 and 90 per cent Loan to Value (LTV) and increasing rates by 0.10% at 70 per cent LTV.

Main Details:

  • Reduce all 85 and 90 per cent LTV rates by 0.20%
  • Reduce all 80 per cent LTV rates by 0.10%
  • Increase all 70 per cent LTV rates by 0.10%
  • 60 per cent LTV tier across all products, priced 0.10% below 70 per cent LTV equivalent rates

Nationwide’s mortgage range now includes:

Two-year fixed rate available for new customers at 3.99% (up to 90 per cent LTV), 3.89% for existing customers

  • £900 product fee for house purchase and existing customers moving home
  • £400 product fee for first-time buyers
  • £99 booking fee (payable upfront and non-refundable)

Two-year fixed rate available for new customers at 3.14% (up to 85 per cent LTV), 3.04% for existing customers

  • £900 product fee for house purchase, remortgage and existing customers moving home
  • £400 product fee for first-time buyers
  • £99 booking fee (payable upfront and non-refundable)

Five-year fixed rate available for new customers at 3.09% (up to 60 per cent LTV), 2.99% for existing customers

  • £900 product fee for house purchase, remortgage and existing customers moving home
  • £400 product fee for first-time buyers
  • £99 booking fee (payable upfront and non-refundable)

Tracie Pearce, head of group mortgages at Nationwide, said: “This re-price is aimed at helping those who need it most – first time buyers. Our mortgage lending currently helps more than one in every five first time buyers get the key to their own front door. As we announced earlier this week, our Save to Buy scheme has proved to be a great success and in the last three years, we have helped thousands of aspiring home buyers.

“Whilst we look to maintain all round competitiveness in our pricing to help maintain the healthy recovery in the housing market, our main priority is providing affordable mortgages to first time buyers and customers with low deposits.”

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

Notes to Editors:

Key features of Nationwide’s 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 before incurring an ERC). Where a product has no ERCs, 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:

  • 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. If a product carries no ERCs, there is no maximum overpayment allowance.

  • Two-year fixed rate mortgage: 2%
  • Three-year fixed rate mortgage: 3%
  • Four-year fixed rate mortgage: 3%
  • Five-year fixed rate mortgage: 4%
  • Two-year tracker rate mortgage: None
  • Three-year tracker rate mortgage: None

*To get access to our range of Flexclusive offers you 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.

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.