Nationwide offers fee-free valuations across mortgage range

10 November 2015

  • £250 cashback for mortgage customers with a Nationwide main current account*

From Wednesday 11 November, Nationwide Building Society is removing all standard valuation fees from its mortgage range.

Customers will now be able to select any mortgage product and benefit from fee-free standard valuations, and is available both direct from Nationwide and through intermediaries. The move will see the average house purchase customer save around £200 and provide them with the option to obtain a mortgage offer with no upfront fees.

Those customers opting for a more detailed Nationwide Homebuyers Report will now pay a reduced top-up fee, depending on the overall value of the property on a sliding scale, starting from £150.

In addition, mortgage customers with a main Nationwide Flex account* who apply will be eligible for a £250 cashback on any product across the mortgage range.

A new 2 year 90 per cent LTV Save to Buy tracker mortgage will be introduced, with a rate of 2.49% with a £999 fee and 2.89% with no fee. With the whole prime mortgage range now available to combine with the Flex main account cashback, the previous 3 year Flexclusive tracker and 4 year fixed rate products will be withdrawn.

The aim is to help mortgage customers by removing upfront costs associated with making a home purchase. All first time buyers can access a £500 cashback once they have completed their purchase, while remortgage customers are offered free standard legals or a £250 cashback.

Henry Jordan, Nationwide’s Head of Mortgages, said: “We have been looking for new ways to help customers buying a home or moving house, and we know that the upfront costs of moving can be an extra burden. The removal of all standard valuation fees from all mortgage transactions will aid both existing home movers and first time buyers, who will also benefit from a £500 cashback on all mortgage products.”

“In addition, all Nationwide main current account holders will be rewarded with an additional cashback of £250, adding considerable value to the mortgage deal and further assisting customers with the costs of a home purchase.”

Customers requesting a full structural survey will be quoted for the cost on an individual basis. A Mortgage Valuation Report (MVR) is not shared with the customer unless it is requested, and is predominately used to inform the Society’s lending decision.

Existing mortgage customers continue to benefit from a 0.10% discount on new customer rates.

Notes to Editors

*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

Nationwide main current account holders that have applied for a mortgage via an intermediary will be validated by the Society at completion, with the £250 cashback paid within 60 days post-completion.

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 legal fees for house purchase 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.
  3. Cashback is payable one month after completion of the mortgage
  4. 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
  5. 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.
  6. 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:

    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.

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.