Nationwide Makes Rate Cuts Across Mortgage Range

29 April 2015

  • Competitive new rates across range of fixed rate deals
  • Society’s lowest ever 2 year and 5 year fixed rate loan products

From Thursday 30 April, Nationwide is making a series of rate reductions across its mortgage range, reducing selected fixed rate deals by up to 0.20%. Nationwide will also be reducing selected deals for switchers as part of the Society’s Loyalty Rate Mortgage initiative.

As part of a broad range of reductions for those looking for payment security, 2 year fixed rate deals with a £999 fee now start at 1.49%, while 5 year fixed rate deals with a £999 fee start at 2.24%. For those looking for longer term security the 10 year fixed rate product with a £999 fee starts at 3.14%. All these rates are for the 60 per cent loan to value (LTV) products and come with a £999 product fee, reduced to £499 for first time buyers.

Existing mortgage customers benefit from at least an additional 0.10% discount on all new customer rates. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

The Flexclusive* 4 year fixed rate deal, available exclusively to Nationwide main current account holders, starts at 2.04% for the 60 per cent LTV deal with a £999 fee.

Henry Jordan, Nationwide’s Head of Mortgages, said: “This new range of fixed rates ensures Nationwide remains competitive and is designed to appeal to those looking for certainty of mortgage payments while interest rates remain at historic lows.”

Summary of Rate Changes:

2 year fixed rates:

  • 60 per cent LTV rate with a £999 fee reduced by 0.10% to 1.49%.
  • 60 per cent LTV rate with a £0 fee reduced by 0.10% to 1.89%.
  • 70 per cent LTV rate with a £999 fee reduced by 0.10% to 1.74%.
  • 70 per cent LTV rate with a £0 fee reduced by 0.10% to 2.14%.

3 year fixed rates:

  • 60 per cent LTV rate with a £999 fee reduced by 0.05% to 1.94%.
  • 60 per cent LTV rate with a £0 fee reduced by 0.05% to 2.24%.
  • 70 per cent LTV rate with a £999 fee reduced by 0.05% to 2.24%.
  • 70 per cent LTV rate with a £0 fee reduced by 0.05% to 2.54%.

4 year Flexclusive fixed rates:

  • 60 per cent LTV rate with a £999 fee reduced by 0.10% to 2.04%.
  • 60 per cent LTV rate with a £0 fee reduced by 0.10% to 2.34%.

5 year fixed rates:

  • 60 per cent LTV rate with a £999 fee reduced by 0.05% to 2.24%.
  • 60 per cent LTV rate with a £0 fee reduced by 0.05% to 2.44%.
  • 70 per cent LTV rate with a £999 fee reduced by 0.15% to 2.54%.
  • 70 per cent LTV rate with a £0 fee reduced by 0.15% to 2.74%.

10 year fixed rates:

  • 60 and 70 per cent LTV rates with a £999 fee reduced by 0.15% to 3.14%.
  • 60 and 70 per cent LTV rates with a £0 fee reduced by 0.15% to 3.24%.

In addition, one of the 3 year Flexclusive* tracker deals has also been reduced, with the 60 per cent LTV rate with a £0 fee reduced by 0.20% to 1.69%.

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:

2 year fixed rates:

  • 80 per cent LTV with £999 fee reduced by 0.05% to 1.94%.
  • 85 per cent LTV with £999 fee reduced by 0.05% to 2.24%.
  • 85 per cent LTV with £0 fee reduced by 0.05% to 2.64%.

5 year fixed rates:

  • 75 per cent LTV with £999 fee reduced by 0.10% to 2.64%.
  • 75 per cent LTV with £0 fee reduced by 0.10% to 2.84%.
  • 80 per cent LTV with £999 fee reduced by 0.05% to 2.94%.

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.
    • 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.
    • 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 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.

    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.

*To get access to Flexclusive offers you must either:

  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.