Nationwide changes to Mortgage Products effective 1st May 2008
In summary
Despite adjusting our rates throughout the first part of the year, we are still continuing to see high demand for our products.
As a mutual it is important we offer our members good deals whilst managing the demand for our products and maintaining a high level of service. As a prudent organisation it is also important to ensure that we continue to manage business volumes through our distribution channels.
In view of this we are making the following changes with effect from 1st May 2008:
- Maximum loan size on all new business is £500,000
- Maximum 90% LTV across all intermediary products for new introduced business*
- Withdrawal of Base Mortgage Rate (BMR) for all new introduced business
- Tracker rates will decrease by 25bps as a result of the Bank of England base rate reduction
*Please note: at 90% LTV, the maximum loan size is £450,000. A maximum loan size of £500,000 is subject to an LTV of 85%
Full details are shown below. All other products remain unchanged.
Reprice of Tracker Rate Product Range
House Purchase
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV |
|---|---|---|---|---|
| 2 Year Tracker | 1 May 2008 | £599 | 6.15% | 6.35% |
| Lifetime Tracker | 1 May 2008 | No fee | 6.34% | 6.54% |
Non-House Purchase (Remortgage / deal switchers / additional borrowing)
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV |
|---|---|---|---|---|
| 2 Year Tracker | 1 May 2008 | £599 | 6.25% | 6.45% |
| Lifetime Tracker | 1 May 2008 | No fee | 6.44% | 6.64% |
Important Exclusions
Some Nationwide mortgage products are only available to customers directly via branches, Nationwide Direct or at www.nationwide.co.uk. These products are clearly labelled 'Direct' on our Intermediary e trading website. Any application received from an intermediary for one of these products will be returned and the application will be cancelled.
Key Dates - To reserve existing products
Deadline for receipt of applications/reserving existing products that are changing is 5pm 30th April 2008. New products are available 1st May 2008. Remember, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange).
- create a new case on our Intermediary e trading website, obtain an 'Accept' DIP and continue to reserve your product paying any fees by credit/debit card before 5pm on 30th April 2008
- on MTE submit a DIP, obtain an 'Accept' decision, complete and submit a full application paying all relevant fees by credit/debit card before 5pm 30th April 2008
Paper Process
- it is also possible for you to deliver paper applications direct to a Nationwide branch or Service Centre before 5pm on 30th April 2008 - please ensure that all relevant fees and documentation are included with the application to pay the reservation fee if applicable
- products without a reservation fee will be reserved once the application form, clearly indicating that a 'no fee' product has been chosen, has been received
- products with a reservation fee will be reserved once the application form and the non refundable reservation fee have been received
- products where the reservation fee has been added to loan will be reserved once the application form, clearly indicating that the fee should be added to the loan, has been received
