Nationwide Reduces Rates Across Mortgage Range

20 May 2015

  • Rate cuts for those with lower deposits looking for fixed rate deals

From Thursday 21 May, Nationwide is making a series of rate reductions across its mortgage range, reducing selected fixed rate deals by up to 0.30%.

For those with a 10% deposit, 2 year fixed rate products now start at 3.34% with a £999 fee, while 5 year fixed rate deals with a £999 fee start at 3.89%.

For those customers with a Nationwide main current account, there are a range of new rates for the Flexclusive* 4 year fixed rate products, with the 90 per cent LTV rate with a £999 fee reduced by 0.20% to 3.74%.

Henry Jordan, Nationwide’s Head of Mortgages, said: “Nationwide remains committed to our heritage of helping customers get a foot on the first step of the property ladder. This new range of competitive fixed rates, with a particular focus on customers with smaller deposits compliments the recently launched £500 cashback for all first time buyers.”

All first time buyers, regardless of product choice, will now receive a £500 cashback. The first time buyer cashback is offered in addition to any further cashback provided through both Nationwide’s Save to Buy, which offers a cashback of up to £1,000 to savers taking out a Save to Buy mortgage, and with Flexclusive* mortgage deals, which offer the choice between a £250 cashback and free standard legal work.

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 and £250 cashback. The £500 first time buyer cashback will be paid directly to the customer’s bank account within a month of completion.

Summary of Rate Changes:

2 year fixed rates

  • 75 per cent LTV rate with a £999 fee reduced by 0.10% to 1.79%, no fee 2.19%
  • 80 per cent LTV rate with a £999 fee reduced by 0.10% to 1.99%, no fee 2.39%
  • 85 per cent LTV rate with a £999 fee reduced by 0.05% to 2.34%, no fee 2.74%
  • 90 per cent LTV rate with a £999 fee reduced by 0.05% to 3.34%, no fee 3.74%

3 year fixed rates

  • 70 per cent LTV rate with a £999 fee reduced by 0.05% to 2.19%, no fee 2.49%
  • 75 per cent LTV rate with a £999 fee reduced by 0.05% to 2.49%, no fee 2.79%
  • 80 per cent LTV rate with a £999 fee reduced by 0.10% to 2.54%, no fee 2.84%
  • 85 per cent LTV rate with a £999 fee reduced by 0.05% to 3.14%, no fee 3.44%
  • 90 per cent LTV rate with a £999 fee reduced by 0.15% to 3.74%, no fee 4.04%

5 year fixed rates

  • 75 per cent LTV rate with a £999 fee reduced by 0.15% to 2.69%, no fee 2.89%
  • 80 per cent LTV rate with a £999 fee reduced by 0.15% to 2.94%, no fee 3.14%
  • 85 per cent LTV rate with a £999 fee reduced by 0.15% to 3.39%, no fee 3.59%
  • 90 per cent LTV rate with a £999 fee reduced by 0.30% to 3.89%, no fee 4.09%

Flexclusive* 4 year fixed rates

  • 75 per cent LTV rate with a £999 fee reduced by 0.05% to 2.54%, no fee 2.84%
  • 80 per cent LTV rate with a £999 fee reduced by 0.20% to 2.69%, no fee 2.99%
  • 85 per cent LTV rate with a £999 fee reduced by 0.05% to 3.19%, no fee 3.49%
  • 90 per cent LTV rate with a £999 fee reduced by 0.20% to 3.74%, no fee 4.04%

Notes to editors

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.