Date issued: 8 Jun 2009

NATIONWIDE EXPANDS RANGE OF MORTGAGE DEALS FOR EXISTING CUSTOMERS

Nationwide Building Society today announces that it is extending its range of mortgage deals for existing customers who are coming to the end of their deal. With effect from 10 June 2009, Nationwide’s mortgage product range for switchers will include:

New two and three year capped tracker rates with no tiering up to 95% LTV

Product term	Reservation fee	Initial tracker rate	Maximum rate payable is capped at	Loan size
2 year tracker	£599	2.99%	3.99%	Up to £150k
2 year tracker	£1,499	2.99%	3.99%	£150k - £500k
3 year tracker	£699	3.49%	4.49%	Up to £150k
3 year tracker	£1,499	3.49%	4.49%	£150k - £500k

New two and three year fixed rates with no tiering up to 95% LTV

Product term	Reservation fee	Loan size Up to £150k	Loan size £150k - £500k
2 year fixed	£1,499	3.34%	3.74%
2 year fixed	£1,999	3.04%	3.64%
2 year fixed	£2,499	2.79%	3.54%

Two and three year fixed rates with no tiering up to 95% LTV
Existing customers who are switching to a two or three year fixed rate product from the current range will have access to one rate, up to a maximum of 95% LTV.

Product term	Reservation fee	Rate
2 year fixed	£0	4.88%
2 year fixed	£599	4.18%
2 year fixed	£995	3.98%
3 year fixed	£995	4.38%

Andy McQueen, mortgage director at Nationwide, said: “We are now offering a range of additional mortgage options for existing customers who are coming to the end of their deal. In some cases, borrowers will have the opportunity to fix their mortgage deal at a lower rate or to take a variable rate product with a cap. As well as being able to choose from a wider product range, the new capped trackers will give customers the added assurance that their payments will not go beyond a certain level should interest rates rise during their deal term.”

Notes to editors:
Customers can deal directly with Nationwide through branches, online at www.nationwide.co.uk or by calling 0800 30 20 10.

New mortgage rates for customers remortgaging and those taking additional borrowing
Nationwide is introducing a new mortgage rate of 4.39% on its three year fixed rate with £995 fee (0-60% LTV) for those who are remortgaging or switching. The Society is also launching a new range of mortgage products for those wishing to take out additional borrowing.

Key features of the fixed, tracker and capped tracker mortgage product range

• Flexibility:
  • Overpayments (no minimum, maximum of £500 per month on fixed, tracker, or capped tracker mortgage deals);
  • Underpayments and draw downs up to limit of overpayment reserve;
  • Apply for a Further Advance, the additional borrowing facility.
• Interest is calculated on a daily basis.
• No compulsory insurance.
• Valuation fee varies based on purchase price of property and not product chosen.
• Valuation fees are non-refundable for home buyers and home movers.
• No standard valuation fees or standard legal fees for borrowers who are remortgaging.
• The maximum LTV is 95% for existing Nationwide mortgage borrowers switching at the end of their current deal or moving home.
• The maximum LTV is 85% for all other borrower types, with the exception of house purchase and remortgage customers who are taking a tracker mortgage deal where the maximum LTV is 80% and 75% respectively.
• The maximum LTV is 75% on new build flats and 90% on new build houses.
• The maximum borrowing limit is £500,000. Loans between £500,001 and £1million available on fixed rate mortgage deals up to 60% LTV for new customers and 85% LTV for existing customers.
• Customers can monitor their application via text or email.
• All tracker and capped tracker products have a floor. If the Bank of England Base Rate is 0.01% or less during the tracker period, the rate the borrower pays will be 0.01% plus the agreed set percentage above the Bank of England Base Rate. This means that the rate the borrower pays will never go below 0.01% plus the additional percentage rate of their tracker mortgage. This is known as the tracker floor.
• At the end of the deal period customers will automatically migrate on to Nationwide’s Standard Mortgage Rate (SMR) which is currently 3.99%.

Reservation fees

• Some Nationwide mortgage deals require applicants to pay a reservation fee. This can be paid up front or added to the loan (adding the fee to the loan will increase the overall cost).
• First time buyers taking out a three year fixed or tracker rate mortgage deal will save £250 on the reservation fee (i.e. they pay £745 fee rather than £995).

Early repayment charges for fixed rate mortgages
Throughout the deal period, a maximum percentage of the outstanding loan is payable as detailed below. Fixed rates allow overpayments of up to £500 per month without the need to pay an early repayment charge.

Two year fixed rate mortgage: 3%
Three year fixed rate mortgage: 4%
Five year fixed rate mortgage: 5%

Early repayment charges for tracker and capped tracker mortgages
Throughout the deal period, a maximum percentage of the outstanding loan is payable as detailed below. Tracker rates allow overpayments of up to £500 per month without the need to pay an early repayment charge.

Two year tracker rate mortgage: 2.5%
Three year tracker rate mortgage: 3%
Lifetime tracker rate mortgage: 3% (for first five years)