Nationwide Cuts 2 Year Fixed Rates for Smaller Deposit Mortgages

Thursday 25 June

  • Further reductions on 2 and 5 year fixed switcher rates for existing customers

From Friday 26 June, Nationwide is reducing 2 year fixed rate mortgage products for those with smaller deposits by up to 0.25%, as well as selected switcher rates for Nationwide mortgage customers looking for a new deal.

Rates for the 80 per cent loan to value (LTV) 2 year fixed rate product start at 1.89%, while for those with a 10 per cent deposit product rates start at 3.24%. There are reductions on the 2 year fixed rate 85 per cent LTV deals for new Nationwide mortgage customers of 0.25%, with rates now starting as low as 2.09%.

Henry Jordan, Nationwide’s Head of Mortgages, said: “These reductions aim to help customers with smaller deposits to secure a competitive mortgage deal, whether they are a first time buyer, or an existing mortgage customer looking for a new deal. The recently launched £500 cashback for first time buyers is an additional boost for those looking to take a step onto the housing ladder, as Nationwide continues to offer extra support for the important group of customers.”

All first time buyers, regardless of product choice, will receive a £500 cashback. 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 new 2 year fixed rates are as follows:

  • 80 per cent LTV rate with a £999 fee reduced by 0.10% to 1.89%
  • 80 per cent LTV rate with a £0 fee reduced by 0.10% to 2.29%
  • 85 per cent LTV rate with a £999 fee reduced by 0.25% to 2.09%
  • 85 per cent LTV rate with a £0 fee reduced by 0.25% to 2.49%
  • 90 per cent LTV rate with a £999 fee reduced by 0.10% to 3.24%
  • 90 per cent LTV rate with a £0 fee reduced by 0.10% to 3.64%

There are further reductions for existing Nationwide mortgage customers who are looking to switch deal as part of the Nationwide Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers to those of its top six high street competitors.

The Loyalty Rate Mortgages rates are as follows:

  • 80 per cent LTV 2 year fixed rate with a £0 fee reduced by 0.05% to 2.14%
  • 85 per cent LTV 2 year fixed rate with a £0 fee reduced by 0.10% to 2.29%
  • 80 per cent LTV 5 year fixed rate with a £999 fee reduced by 0.05% to 2.79%
  • 80 per cent LTV 5 year fixed rate with a £0 fee reduced by 0.10% to 2.94%
  • 85 per cent LTV 5 year fixed rate with a £0 fee reduced by 0.05% to 3.39%

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 90.01% 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 (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);
      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.