Nationwide resumes Help to Buy for home movers

Society also removes booking fees for new mortgage reservations

23 September 2014

Nationwide Building Society is resuming access for home movers looking to participate in the Government’s Help to Buy equity loan scheme from Wednesday, 24 September 2014.

Nationwide has continued to be a strong supporter of the Help to Buy equity loan scheme, but temporarily withdrew access for home movers in July 2014, restricting access to first time buyers only. This followed a similar move from Lloyds Banking Group (LBG). Nationwide and LBG have been the two most active supporters of the scheme during its first year and this was therefore a necessary step to ensure volumes remained in line with the Society’s appetite.

Having taken time to assess developments in the equity loan market, Nationwide is now in a position to once again support home movers through the scheme. The move is expected to make Nationwide the leading lender for the Help to Buy equity loan scheme.

Help to Buy Equity Loan is available to home buyers purchasing their only property in England up to a value of £600,000. Buyers must have a five per cent deposit, based on the purchase price. The property is part financed (up to 20 per cent and a minimum of 10 per cent) by an equity loan from the Homes and Communities Agency. There are separate schemes for Wales and Scotland*.

As a result of the changes, shared equity applications will be available on both the fee and no fee products. This means that customers applying via the Help to Buy equity loan scheme now have unrestricted access to Nationwide’s full core range.

In addition to the Help to Buy changes, Nationwide will no longer charge a booking fee for all new mortgages. Mortgage deals will be either fee-free, or come with a £999 product fee, with a discounted £499 fee for first time buyers. Customers opting for a mortgage with a fee can continue to add this to the loan.

Richard Napier, Nationwide’s Divisional Director of Mortgages and Savings, said: “Nationwide has been a long term supporter of the Help to Buy equity loan scheme. By opening up access once more to home movers after a short break, we will remain one of the top lenders through the scheme and will enable even more customers to move onto or up the housing ladder.

“These changes are very positive for our customers. Nationwide continues to offer shared equity customers access to our standard mortgage rates, rather than charging a premium like some other lenders. This demonstrates our ongoing commitment to this market, proving once again that we are on our customers’ side.”

Notes to Editors:

*There is currently restricted availability of the Help to Buy scheme in Scotland

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.