Nationwide Group Offers Joint Let To Buy and Homebuyer Mortgage Deal

2 June 2015

  • New TMW Let to Buy range with £250 cashback and free valuation
  • Available to both new and existing Nationwide customers

Nationwide Building Society is launching a new loyalty initiative for customers converting their existing main residence into a Buy to Let through The Mortgage Works (TMW) to rent out, while at the same time purchasing a residential property to live in.

From 3 June, a new set of dedicated loyalty Let to Buy products will be launched through TMW, part of the Nationwide Group. Customers will now have the opportunity to apply simultaneously for a Let to Buy mortgage on their existing property with TMW as well as the onward residential mortgage for their new property through Nationwide.

Those customers remortgaging their current home as a Buy to Let with TMW and completing their new residential mortgage through Nationwide will be rewarded with a £250 loyalty cashback.

It is the first time Nationwide has offered a dual-branded proposition combining both Nationwide’s residential mortgage arm and the Nationwide Group’s specialist lender TMW.

Paul Wootton, Head of Specialist Lending, said: “Nationwide is taking a joined-up approach to helping home movers turn their existing home into a buy to let, while purchasing a new home in which to live. We are making it easier and more flexible for our customers to complete the process of securing two different types of home loan at the same time, helping those who may wish to live elsewhere but want to turn their existing property into an investment opportunity.

“Customers who complete both transactions through the Nationwide Group will receive a £250 cashback as a loyalty reward. This could help assist with moving costs or added legal fees that can be associated with completing two mortgages at once.”

Customers will be able to apply for a new residential mortgage with Nationwide of up to 85% loan to value (LTV) when applying for a TMW Let to Buy loan. The new Let to Buy loyalty products, and the new Nationwide process, are available only through intermediaries and will be available to both existing mortgage customers and those new to Nationwide.

In addition, all TMW Let to Buy mortgage customers will receive a free standard valuation as part of a revised range.

David Hollingworth, Associate Director at intermediary firm London & Country, said: “A move to a new property can often be the point when an owner makes the decision to become a landlord. Linking the two sides of the let to buy coin makes sense and should give brokers and their customers the option of a more joined up solution with added cost incentives.

The key TMW Let to Buy products available to customers completing the onward residential purchase through Nationwide are as follows:

  • 2 year fixed rate with £995 fee, available up to 65% LTV at 2.99%.
  • 2 year fixed rate with £995 fee, available up to 75% LTV at 4.09%.
  • 5 year fixed rate with £995 fee, available up to 65% LTV at 3.99%.
  • 5 year fixed rate with £995 fee, available up to 75% LTV at 4.49%.

All come with a free valuation and a £250 cashback.

New customers to Nationwide will have access to the core mortgage range. Existing Nationwide mortgage customers will be eligible for the 0.10% loyalty discount and will be eligible to port their existing product as usual.

Notes to editors:

The onward residential mortgage application with Nationwide will only be considered as part of a Let to Buy transaction, if the customer is completing the Let to Buy mortgage with TMW.

TMW Let to Buy loans can be taken on an interest-only, capital and repayment or a combination of both and are subject to a £150 booking fee.

TMW Let to Buy ERCs

Year 1 Year 2 Year 3 Year 4 Year 5
2 year fixed 3% 2%
5 year fixed 6% 5% 4% 3% 2%

The minimum loan size for TMW’s new business products is unchanged at £25,001 (£2,500 for Further Advances)

Details of terms and conditions for TMW loans are available on request.

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*)
  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. (on eligible products only)
  5. 6. New Build LTVs:
    • 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 mortgage products reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility. Any mortgage products reserved after this date no longer include these facilities.
  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:

    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 The Mortgage Works

The Mortgage Works (TMW) is a subsidiary of Nationwide Building Society. With over 20 years’ experience in the mortgage market, TMW has developed a range of innovative products and is renowned for its trademark common sense approach to mortgages.

TMW's range of specialist products is available through professional mortgage intermediaries and designed to complement the range of products available through Nationwide. With a dedicated business development and sales support team, TMW is proud to offer a first class service to its customers.

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.