Nationwide introduces new 5 year tracker mortgage

8 November 2016

From Wednesday 9 November, Nationwide is launching a new 5 year tracker mortgage product.

Rates for the 60 per cent loan to value (LTV) tracker product start at 1.89% with a £999 fee. There is also a 70 per cent LTV tracker mortgage at 2.09% with a £999 fee, and a 75 per cent product LTV at 2.19% with a £999 fee.

All Nationwide tracker mortgage products currently have no Early Redemption Charges (ERCs). Existing mortgage customers benefit from a 0.10% discount on the new customer rate, as well as a £250 cashback for mortgage customers switching to a new deal or moving home.

The launch is one of a series of recent measures taken by the Society to increase choice and flexibility across the mortgage range. These include the introduction of 95 per cent LTV tracker products and increasing the maximum loan to value (LTV) for customers remortgaging from other lenders to the Society on a like-for-like basis from 85 per cent LTV to 90 per cent.

These are complemented by the Society’s range of additional benefits for both first time buyers and home movers. All standard mortgage valuations are now fee-free, while first time buyers receive a £500 cashback to help with the cost of moving. Nationwide Flex main current account holders who are taking out a Nationwide mortgage are also eligible for an additional £250 cashback. Remortgage customers are able to benefit from a free standard valuation and the choice between free standard legal work and £250 cashback.

Henry Jordan, Nationwide’s Head of Mortgages, said:: "We are extending the choice of Nationwide tracker mortgages to include a 5 year option, responding to customer demand and a growing market for more flexible products. This will be particularly useful for those with larger deposits looking for a product that provides maximum flexibility with no limit on overpayments.

"With the combination of competitive rates and access to additional benefits, Nationwide will continue to offer mortgage deals that are amongst the best on the high street."

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 or for those who are remortgaging.
  3. Cashback is payable one month after completion of the mortgage, with the exception of the following:
    • For Flex customers applying through the introduced channel the cashback is payable up to three months after completion of the mortgage
  4. Maximum LTV:
    • Lending above 90.01% is only 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
      • Save to Buy customers.
    • Maximum 75% LTV on new build flats and 85% LTV on new build houses.
  5. 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.
  6. 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.