Nationwide launches lowest 10 year fixed rate mortgage on the market

20 January 2015

  • Payment security for a decade with rates from 2.84% for existing customers
  • Competitive new rates across range of longer term fixed deals

From Wednesday 21 January, Nationwide is offering the lowest 10 year fixed rate mortgage currently on the market.

The new 10 year fixed rate deal, available at up to 60 per cent loan to value (LTV), is reduced by 0.55% to a rate of 2.94% for new mortgage customers, and 2.84% for existing mortgage customers. This comes with a £999 product fee, reduced to £499 for first time buyers. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

As part of a broad range of reductions for those looking for payment security with longer term fixed rates, 5 year fixed rate deals have also been reduced by up to 0.40%, with rates starting from 2.44% for new mortgage customers.

A wide range of 2 and 3 year fixed deals have also been reduced. The 2 year fixed rates now start at 1.74% for new mortgage customers and both 3 year fixed rates and the 4 year fixed rate Flexclusive deals, available only to Nationwide’s main current account customers, both now start at 2.24%.

Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates, with 2 year fixed rates for existing customers now starting at 1.64% - Nationwide’s lowest ever fixed rate.

Richard Napier, Nationwide’s Director of Mortgages and Savings, said: “There has been a growing trend of customers opting for longer term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently-introduced 10 year fixed rate mortgages proving a popular addition to the range .This competitive range of new fixed rate mortgage deals is likely to appeal to both first time buyers and those looking to remortgage by ensuring longer term security of mortgage payments.”

Key highlights include:

New 2.94% ten year fixed rate up to 60 per cent LTV with £999 product fee (2.84% for existing Nationwide mortgage customers)

  • First time buyers pay a reduced product fee of £499
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback

New 2.44% five year fixed rate up to 60 per cent LTV with £999 product fee (2.34% for existing Nationwide mortgage customers)

  • First time buyers pay a reduced product fee of £499
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback

New 1.74% two year fixed rate up to 60 per cent LTV with £999 product fee (1.64% for existing Nationwide mortgage customers)

  • First time buyers pay a reduced product fee of £499
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback

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 for those looking for a new deal.

The Loyalty Rate Mortgages changes are as follows:

Two year fixed rates

  • 90 per cent LTV 2 year fixed rate with £999 fee reduced by 0.20% to 3.34%.
  • 90 per cent LTV 2 year fixed rate with no fee reduced by 0.20% to 3.74%.

Five year fixed rates

  • 80 per cent LTV 5 year fixed rate with £999 fee reduced by 0.20% to 3.14%.
  • 80 per cent LTV 5 year fixed rate with no fee reduced by 0.20% to 3.34%.

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.

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.

Percentage of the outstanding loan payable
Fixed Rate Deal Period
  2 years 3 years 4 years 5 years 10 years
Year 1 2% 3% 4% 5% 7%
Year 2 1% 2% 3% 4% 7%
Year 3   1% 2% 3% 7%
Year 4     1% 2% &7%
Year 5       1% 6%
Year 6         5%
Year 7         4%
Year 8         3%
Year 9         2%
Year 10         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.

About Nationwide

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 customers.

Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 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.