Nationwide reduces rates on 95 per cent LTV mortgages

8 January 2016

From Wednesday 6 January 2016, Nationwide is cutting selected rates by up to 0.40% across its range of 5 per cent deposit fixed rate mortgages.

Rates for the 2 year 95 per cent loan to value (LTV) product are cut by 0.35% to 3.89% with a £999 fee and 4.29% with no fee.

Three year 95% LTV fixed rates are reduced by 0.40% to 4.39% with a £999 fee and 4.69% with no fee, while 5 year fixed rates are reduced by 0.30% to 4.69% with a £999 fee and 4.89% with no fee respectively.

Henry Jordan, Nationwide’s Head of Mortgages, said: “As part of Nationwide’s range of measures to help first time buyers on to the housing ladder, we are reducing rates for those with smaller deposits looking for competitive rates and payment security over a range of terms.

“First time buyers will also continue to qualify for a £500 cashback, irrespective of which product they choose. This is in addition to fee-free valuations now available on all mortgage products, which will save the average Nationwide mortgage customer around £200. Nationwide Flex* main current account holders applying for a mortgage will also be eligible for a £250 cashback on any product across the mortgage range.”

Customers can select any mortgage product and benefit from fee-free valuations, providing them with the option to obtain a mortgage offer with no upfront fees. Those customers opting for a more detailed Nationwide Homebuyers Report will now pay a reduced top-up fee, depending on the overall value of the property on a sliding scale, starting from £150.

Existing mortgage customers continue to benefit from a 0.10% discount on new customer rates. There are also rate changes for existing mortgage customers looking to switch deal as part of Nationwide’s Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers to those of its top six high street competitors. This includes switcher rates at up to 60 per cent LTV reduced to 1.44% with a £999 fee and 1.79% with no fee.

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 initiative, 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 the following week to be lower by at least 0.01%. This process will be repeated each week.
  • The Loyalty Rate Mortgages initiative 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 or for those who are remortgaging.
  3. Free standard legal fees for remortgage 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:
      • First-time buyers and home movers.
      • Existing Nationwide mortgage borrowers switching at the end of their current deal or moving home.
      • Help to Buy ISA customers.
    • 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.

*Flexclusive mortgages are available to Nationwide main current account holders who:

  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.