Nationwide Offers £500 Cashback for First Time Buyers

12 May 2015

  • Also cuts 10 year fixed mortgage rates for existing customers

From Wednesday 13 May Nationwide is replacing its current £500 product fee discount with a £500 cashback available to all first time buyers.

Previously, those first time buyers choosing a Nationwide mortgage deal with a £999 fee were eligible for a £500 discount. Now a £500 cashback will be available on all first time buyer products.

The first time buyer cashback is offered in addition to any cashback provided through Nationwide’s Save to Buy, which offers a cashback of up to £1,000 to savers taking out a Save to Buy mortgage, or Flexclusive* mortgage deals, which offer the option of a £250 cashback. It will be paid directly to the customer’s bank account within a month of completion.

At the same time, 10 year fixed rate mortgages have been cut by up to 0.65% for existing Nationwide mortgage customers looking to switch to a new deal, as part of the Society’s Loyalty Rate Mortgages initiative to offer the best rates on the high street to existing customers. Rates for 10 year fixed rate deals start at 3.04% for products up to 70 per cent loan to value (LTV).

Henry Jordan, Nationwide’s Head of Mortgages, said: “Setting up home for the first time can prove to be a costly experience. By introducing a £500 cashback for all first time buyers, on top of the various other great options we have to support these customers, Nationwide aims to provide additional support when it is needed most.

“In addition, the Loyalty Rate Mortgages initiative continues to benefit our existing customers, with competitive 5 and 10 year fixed rate deals for those looking for payment security over the longer term.”

Nationwide 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 to switch to a new deal.

The Loyalty Rate Mortgages change is as follows:

10 year fixed rates:

  • 60 per cent and 70 per cent LTV with a £999 fee reduced by 0.10% from 3.04% to 2.94%.
  • 60 per cent and 70 per cent LTV with a £0 fee reduced by 0.10% from 3.14% to 3.04%.
  • 75 per cent LTV with a £999 fee reduced by 0.40% from 3.34% to 2.94%.
  • 75 per cent LTV with a £0 fee reduced by 0.40% from 3.44% to 3.04%.
  • 80 per cent LTV with a £999 fee reduced by 0.65% from 3.59% to 2.94%.
  • 80 per cent LTV with a £0 fee reduced by 0.65% from 3.69% to 3.04%.

In addition, the following 5 year fixed switcher rates with a £999 fee will be reintroduced:

  • 85 per cent LTV with a £999 fee reintroduced at 3.24%.
  • 90 per cent LTV with a £999 fee reintroduced at 3.84%.

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 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);
    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.