Major mortgage range revamp at Nationwide

Two-year fixed rate and tracker mortgages now under 2%

09 September 2014

Despite continued uncertainty around a potential Base Rate rise, Nationwide is ramping up its support for home movers and remortgage customers by reducing rates on some of its most popular mortgages.

As more borrowers look to fix their mortgage repayments to ensure a degree of certainty, Nationwide is cutting rates by up to 0.70% across fixed and tracker deals, even for those with smaller deposits.

Significant reductions mean that two year fixed rate mortgages are now available from 1.94%, three year fixed rates start from 2.39% and five year fixed rates start from 2.99%. Two year tracker rates will now start at just 1.69%.

Loyal, existing customers will also continue to benefit from an additional 0.10% reduction whenever they make a new application to move home or switch products.

Nationwide current account customers can choose from either a four year fixed rate Flexclusive mortgage (at the same rate as the three year version available to new customers) or a three year Flexclusive tracker mortgage starting at 1.89%.

Tracie Pearce, Nationwide’s Head of Mortgages, said: “With increased debate around the possibility of an interest rate rise, customers are keen to access competitively-priced fixed rates and trackers.

“In particular, access to a rate of less than 2% (1.94%) for a two year fixed rate mortgage and less than 3% for a five year version show that we continue to offer some of the most competitive rates on the market. Along with our outstanding customer service record, this makes Nationwide the first port of call for the needs of both new and existing customers, even those with smaller deposits.”

Notes to Editors:

Two-year fixed rate up to 60% LTV available for new customers at 1.94% (1.84% for existing customers) with £900 fee

  • First time buyers pay a reduced fee of £400
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • A non-refundable booking fee of £99 is payable on reservation

Two-year fixed rate up to 90% LTV available for new customers at 3.89% (3.79% for existing customers) with £900 fee

  • First time buyers pay a reduced fee of £400
  • A non-refundable booking fee of £99 is payable on reservation

Five-year fixed rate up to 60% LTV available for new customers at 2.99% (2.89% for existing customers) with £900 fee

  • First time buyers pay a reduced fee of £400
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • A non-refundable booking fee of £99 is payable on reservation

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:
    • 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.
    • 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 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.

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.