Nationwide changes to Mortgage Rates effective 11th April 2008
In summary
We are making the following changes to our mortgage products with effect from 11th April 2008.
- withdrawal of selected fixed rate products
- increase of rates on selected fixed rate products
- change to maximum loan size
- withdrawal of Open Market Home Buy Scheme
Don't forget, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange) until 5pm 10th April 2008.
Full details of the changes are listed below. All other products and rates remain the same.
Product Withdrawals
House Purchase
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV | Max 95% LTV |
|---|---|---|---|---|---|
| 2 Year Fixed Opt B | 11 April 2008 | £999 | 5.82% | 6.02% | 6.52% |
| 3 Year Fixed | 11 April 2008 | £499 | 5.95% | 6.15% | 6.65% |
Non-House Purchase (Remortgage / deal switchers / additional borrowing)
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV | Max 95% LTV |
|---|---|---|---|---|---|
| 2 Year Fixed Opt B | 11 April 2008 | £999 | 5.98% | 6.18% | 6.68% |
| 3 Year Fixed | 11 April 2008 | £499 | 6.18% | 6.38% | 6.88% |
Reprice of Fixed Rate Product Range
House Purchase
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV | Max 95% LTV |
|---|---|---|---|---|---|
| 2 Year Fixed Opt A | 11 April 2008 | £499 | 6.10% | 6.30% | 6.80% |
| 2 Year Fixed | 11 April 2008 | No fee | 6.50% | 6.70% | 7.20% |
| 5 Year Fixed | 11 April 2008 | £699 | 6.15% | 6.35% | 6.75% |
| 10 Year Fixed | 11 April 2008 | £499 | 6.04% | 6.24% | 6.64% |
Non-House Purchase (Remortgage / deal switchers / additional borrowing)
| Product | Effective from | Res. fee - new business | Max 75% LTV | Max 90% LTV | Max 95% LTV |
|---|---|---|---|---|---|
| 2 Year Fixed Opt A | 11 April 2008 | £499 | 6.30% | 6.50% | 7.00% |
| 2 Year Fixed | 11 April 2008 | No fee | 6.70% | 6.90% | 7.40% |
| 5 Year Fixed | 11 April 2008 | £699 | 6.15% | 6.35% | 6.75% |
| 10 Year Fixed | 11 April 2008 | £499 | 6.04% | 6.24% | 6.64% |
Changes To Maximum Loan Size
A total borrowing limit of £1m applies. This includes any existing borrowing held with Nationwide.
Existing customers whose current loans already exceed £1million will not be entitled to any additional borrowing.
Existing customers whose current loans already exceed £1million can still switch to another product or port their mortgage, providing they are not looking for additional borrowing.
Existing customers with loans below £1million will be entitled to further or flexible advances taking their total borrowing to up to £1million (total borrowing) – subject to the normal lending criteria.
This policy applies to all cases that were received by Nationwide after Friday 4th April.
Open Market Home Buy
The present Open Market Home Buy scheme was terminated by the Government at the end of March 2008. In line with this decision we have withdrawn our OMHB product.
Key Dates - to reserve fixed and tracker products
Deadline for receipt of applications/reserving existing fixed rate products that are changing is 5pm 10th April 2008, new products available 11th April 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 10th 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 10th 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 the 10th 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
