Nationwide makes wide-ranging cuts to its fixed mortgage rates

9 August 2016

From Wednesday August 10, Nationwide is making reductions to the majority of its fixed rate mortgages by up to 0.20%, having already confirmed that it will pass on the full 0.25% Base Rate reduction to its existing tracker mortgage, Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) customers.

The Society is making significant rate reductions to a large selection of its 2, 3, 5 and 10 year fixed rate products. The 2 year fixed rate products start at 1.49% with a £999 fee and 1.89% with no fee, the 3 year fixed rate products at 1.79% with a £999 fee and 2.09% with no fee, and the 5 year fixed rate range at 2.14% with a £999 fee and 2.34% with no fee.

For those looking for a decade of payment security, the 10 year fixed rate products are now at the lowest ever rate set by the Society, from 2.79% with a £999 fee and 2.89% with no fee for the 60 per cent LTV deal.

Following the 0.25% reduction in the Bank of England Base Rate, existing Nationwide mortgage tracker customers saw the decrease passed on in full. For new customers, from 10 August, rates for the 2 year tracker products will start at 1.29% with a £999 fee and 1.69% with no fee.

The new deals 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.

Existing Nationwide mortgage customers receive a £250 cashback when they take a new mortgage deal, in addition to continuing to benefit from a 0.10% discount on new customer rates.

Henry Jordan, Nationwide’s Head of Mortgages, said: “Following the cut in the Bank of England Base Rate, we have already passed on the benefit in full to those customers on our BMR and SMR rates. Now we are reducing fixed rate deals for those looking for competitive rates and payment security over a wide range of terms and size of deposit.

“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. For our existing customers, we offer both rates that are always discounted by 0.10% when compared to the new customer rate and a £250 for those mortgage customers moving home or switching to a new product. With the combination of competitive rates and access to additional benefits for both new and existing customers, Nationwide will continue to offer deals that are amongst the best on the high street.”

Notes to Editors

Mortgages with tracker floors may not see a reduction in rates.

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

Year 7

Year 8

Year 9

Year 10


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.