Nationwide Product and Criteria changes with effect from 3 June 2008

In summary

We are making the following changes to our mortgage products with effect from 3 June 2008:

  • Reprice of 2, 5, 10 and 25 year fixed rate products
  • Changes to New Build and Self Build lending criteria

Don't forget, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange) until 5pm June 2008.

Full details of the changes are listed below. All other products and rates remain the same.

Reprice of Fixed Rate Product Range

House Purchase

Product Effective from Res. fee - new business Max 75% LTV Max 90% LTV
2 Year Fixed 3 June 2008 £599 6.25% 6.45%
2 Year Fixed 3 June 2008 No fee 6.65% 6.85%
5 Year Fixed 3 June 2008 £599 6.10% 6.30%
10 Year Fixed 3 June 2008 £599 6.14% 6.34%
25 Year Fixed 3 June 2008 £599 6.28% 6.48%

Non-House Purchase (Remortgage/Additional borrowing)

Product Effective from Res. fee - new business Max 75% LTV Max 90% LTV
2 Year Fixed 3 June 2008 £599 6.45% 6.65%
2 Year Fixed 3 June 2008 No fee 6.85% 7.05%
5 Year Fixed 3 June 2008 £599 6.20% 6.40%
10 Year Fixed 3 June 2008 £599 6.14% 6.34%
25 Year Fixed 3 June 2008 £599 6.28% 6.48%

New Build Properties - changes to lending criteria

To bring us more in line with other high street lenders we are making some changes to our New Build and Self Build lending criteria, which apply to all new mortgage applications received on or after 3 June:

  • The maximum loan to value (LTV) on New Build flats will be 75%
  • The maximum LTV on New Build houses will be 90%
  • Remortgage applications on partially built properties, partially completed barn conversions or building plots will no longer be accepted. Remortgages include capital raising on a mortgage free self build/conversion/plot

With effect from the Monday 9 June, all New Build properties will now be valued on a re-sale basis, previously this only applied to New Build flats.

Valuation Fees

To ensure transparency and that you receive a high standard of service we are clarifying our policy on the refund of valuation fees. For cases submitted on or after 9 June:

  • Valuation fees will only be refunded where we receive notice of cancellation before 4pm on the day before the valuation is due to be carried out
  • We will not refund the valuation fee once the valuation has been carried out, even if the application is declined, although the applicant can receive a copy of the valuation report

Key Dates - to reserve fixed and tracker products

The deadline for receipt of applications/reserving existing fixed rate products that are changing is 5pm 2 June 2008 and new products are available from 3 June 2008. Please remember, products can be reserved online through our e trading website or via MTE (Mortgage Trading Exchange).

  • You can 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 2 June 2008
  • On MTE, you can submit a DIP, obtain an 'Accept' decision, complete and submit a full application, paying all relevant fees by credit/debit card before 5pm 2 June 2008

Important Exclusions - a reminder

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.

Paper Process - a reminder

  • Products with no reservation fee will be reserved on receipt of the application form, which must clearly indicate that a 'no fee' product has been chosen
  • Products with a reservation fee will be reserved on receipt of the application form and the reservation fee
  • Products where the reservation fee has been added to loan will be reserved on receipt of the application form, which must clearly indicate that the fee should be added to the loan