Nationwide cuts fixed rates on smaller deposit mortgages

  • ​Reductions on up to 95 per cent LTV products
  • Fee-free valuations for mortgage customers. £500 cashback for all first time buyers

From Tuesday 10 May, Nationwide is reducing selected fixed rate mortgages at 85, 90 and 95 per cent loan-to-value (LTV) by up to 0.20%.

The reductions are being made on a range of 2, 3 and 5 year fixed rate deals, with rates for those mortgage customers with a five per cent deposit now starting at 3.99% for a 2 year fixed rate mortgage with a £999 fee. The rates for those with a 10 per cent deposit start at 2.49%, while those with a 15 per cent deposit start at 1.94%, both with a £999 fee.

Buyers opting for a 5 year fixed rate mortgage deal will see rates reduced to 2.99% for the 85 per cent LTV product, 3.29% for the 90 per cent LTV product, and 4.79% LTV for the 95 per cent product, all with a £999 fee.

The new deals are complemented by the Society’s range of addition benefits for both first time buyers and home movers. All mortgage valuations are now fee-free, while first time buyers are able to access 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.

In addition, those customers saving through a Nationwide Help to Buy ISA are eligible for the Society’s Save to Buy mortgage range, with 95 per cent mortgage rates 0.40% lower than the equivalents in the core range, plus additional cashbacks of up to £1,000.

Henry Jordan, Nationwide’s Head of Mortgages, said: “We are reducing rates for those with smaller deposits who are looking for competitive rates and payment security over a range of terms, with a focus on first time buyers who will continue to qualify for a £500 cashback. With the combination of competitive rates and access to additional benefits, Nationwide will continue to offer mortgage customers amongst the best deals on the high street. Standard valuations remain fee-free for all customers and Nationwide main current account customers can access a cashback of £250, both irrespective of which product they choose.

“These deals are is in addition to the discounted rates and benefits now available to Nationwide Help to Buy ISA savers taking out a mortgage with the Society, who are eligible for a package of discounted rates as well as extra cashbacks, further helping customers to secure a home of their own.”

The new Nationwide mortgage rates are as follows:

85% LTV fixed rates

  • 2 year fixed rates with a £999 and £0 fee reduced by 0.05% to 1.94% and 2.34% respectively.
  • 5 year fixed rates with a £999 and £0 fee reduced by 0.15% to 2.99% and 3.19% respectively.

90% LTV fixed rates

  • 2 year fixed rates with a £999 and £0 fee reduced by 0.15% to 2.49% and 2.89% respectively.
  • 3 year fixed rates with a £999 and £0 fee reduced by 0.15% to 2.99% and 3.29% respectively.
  • 5 year fixed rates with a £999 and £0 fee reduced by 0.20% to 3.29% and 3.49% respectively

95% LTV fixed rates

  • 2 year fixed rates with a £999 and £0 fee reduced by 0.10% to 3.99% and 4.39% respectively.
  • 3 year fixed rates with a £999 and £0 fee reduced by 0.10% to 4.49% and 4.79% respectively.
  • 5 year fixed rates with a £999 and £0 fee reduced by 0.10% to 4.79% and 4.99% respectively.

Existing mortgage customers continue to benefit from a 0.10% discount on new customer rates. Nationwide offers a core range of competitive rates for all mortgage applicants, while remortgage customers are able to borrow up to 85 per cent LTV and benefit from a free standard valuation and the choice between free standard legal work and £250 cashback.

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 years3 years4 years5 years10 years
Year 12%3%4%5%7%
Year 21%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:

  • Been paying in £750+ a month for the last 3 months (excluding internal transfers); Or
  • 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.