Nationwide reduces fixed rates across mortgage range

7 October 2015

  • New longer term mortgage deals including 5 and 10 year products
  • Selected 2 and 3 year products also reduced, £500 cashback for all first time buyers

From Thursday 8 October, Nationwide is reducing selected fixed rate mortgages across its range by up to 0.45%.

The reductions are being made on a range of 2, 3, 5 and 10 year fixed rate deals, with rates for those with a 10 per cent deposit now starting at 2.79% for a 2 year fixed rate mortgage and 3.54% for a 5 year fixed rate mortgage, both with a £999 fee.

Deals at 70 per cent loan to value (LTV) for the 3 year fixed rate start at 2.14% and for the 5 year fixed rate at 2.54%, both with a £999 fee.

Buyers opting for a 10 year fixed rate mortgage will see rates reduced by up to 0.45%, with rates available from 3.14% with a £999 fee for customers with a 30 per cent deposit and 3.64% with a £999 fee for customers with a 15 per cent deposit.

The new deals complement the Society’s new range of competitive fixed rate 95% LTV mortgage deals, starting at under 4%. The products are not part of any scheme, such as Help to Buy, and are available to both first time buyers and home movers and offered both through brokers as well as direct through Nationwide.

Henry Jordan, Nationwide’s Head of Mortgages, said: “Following the launch of Nationwide’s new range of mortgage products for those with a 5% deposit, we are now reducing rates for those with larger deposits looking for competitive rates and payment security over the short, medium and longer term.

“First time buyers will also continue to qualify for a £500 cashback irrespective of which product they choose. This is in addition to the benefits available on the Flexclusive range of mortgages, including a free standard valuation and the option of either £250 cashback or no standard legal fees.”

The new Nationwide mortgage rates are as follows:

2 year fixed rates:

  • 90 per cent LTV rates reduced by 0.20% to 2.79% with a £999 fee and 3.19% with no fee.

3 year fixed rates:

  • 70 per cent LTV rates reduced by 0.05% to 2.14% with a £999 fee and 2.44% with no fee
  • 75 per cent LTV rates reduced by 0.30% to 2.19% with a £999 fee and 2.49% with no fee.
  • 80 per cent LTV rates reduced by 0.15% to 2.39% with a £999 fee and 2.69% with now fee
  • 85 per cent LTV rates reduced by 0.15% to 2.54% with a £999 fee and 2.84% with no fee
  • 90 per cent LTV rates reduced by 0.15% to 3.24% with a £999 fee and 3.54% with no fee

Flexclusive* 4 year fixed rates:

  • 75 per cent LTV rates reduced by 0.10% to 2.44% with a £999 fee and 2.69% with no fee.
  • 80 per cent LTV rates reduced by 0.10% to 2.59% with a £999 fee and 2.84% with no fee.
  • 85 per cent LTV rates reduced by 0.10% to 2.84% with a £999 fee and 3.09% with no fee.
  • 90 per cent LTV rates reduced by 0.10% to 3.39% with a £999 fee and 3.64% with no fee.

5 year fixed rates:

  • 70 per cent LTV rates reduced by 0.15% to 2.54% with a £999 fee and 2.74% with no fee.
  • 75 per cent LTV rates reduced by 0.15% to 2.69% with a £999 fee and 2.89% with no fee.
  • 80 per cent LTV rates reduced by 0.10% to 2.84% with a £999 fee and 3.04% with no fee
  • 85 per cent LTV rates reduced by 0.10% to 3.14% with a £999 fee and 3.34% with no fee
  • 90 per cent LTV rates reduced by 0.10% to 3.54% with a £999 fee and 3.74% with no fee

10 year fixed rates:

  • 60% and 70% LTV rates reduced by 0.10% to 3.14% with a £999 fee and 3.24% with no fee
  • 75% and 80% LTV rates reduced by up to 0.45% to 3.24% with a £999 fee and 3.34% with no fee
  • 85% LTV rates reduced by 0.35% to 3.64% with a £999 fee and 3.74% with no fee
  • 90% LTV rates reduced by 0.30% to 4.04% with a £999 fee and 4.14% with no fee

Existing mortgage customers continue to benefit from a 0.10% discount on new customer rates. Nationwide offers a core range of competitive rates for all mortgage applicants, as well as a £500 cashback for first time buyers. Remortgage customers are able to borrow up to 85 per cent LTV and benefit from a free standard valuation and the choice between free standard legal work and £250 cashback.

In addition to the changes to the core range, there are also reductions for existing mortgage customers looking to switch deal as part of Nationwide’s Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers to those of its top six high street competitors

Amongst the reductions include the 2 year fixed rate deal at up to 90 per cent LTV, reduced by 0.55% to 2.34% with a £999 fee and 2.74% with no fee, and the Flexclusive* 3 year tracker at 90% LTV, reduced by 0.55% to 2.94% with no fee.

Notes to Editors

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 initiative, 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 the following week to be lower by at least 0.01%. This process will be repeated each week.
  • The Loyalty Rate Mortgages initiative 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 90.01% is available on fixed rate mortgages.
    • 95% LTV mortgages are available to:
      • First-time buyers and home movers.
      • Existing Nationwide mortgage borrowers switching at the end of their current deal or moving home.
      • Save to Buy customers.
    • Maximum 75% LTV on new build flats and 85% LTV on new build houses
  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 (ERCs)
    If you repay a mortgage early or make an overpayment of more than your overpayment allowance, you may need to pay an Early Repayment Charge. For Nationwide mortgages reserved after 8 October 2014, you would need to pay a percentage of the outstanding loan amount as follows:

    Details of the Fixed Rate Deal Period
    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%

ERCs don't currently apply to our Tracker Rate mortgages.

*Flexclusive mortgages are available to Nationwide main current account holders who:

  1. Hold a FlexOne account and be aged 18 or over, or hold a FlexAccount with a Visa debit card (not cash card or cash card+) and have:
    1. Been paying in £750+ a month for the last 3 months (excluding internal transfers); or
    2. Completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team 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.