Date issued: 15 Oct 2009

NATIONWIDE TO HELP HOME BUYERS 'GET MOVING'
And offers more good news to existing borrowers

Nationwide Building Society is, from Friday 16 October 2009, launching a number of initiatives, and rate cuts of up to 0.84%, which could make it easier for homebuyers to either get on the housing ladder for the first time or purchase their next property. The Society is also making further improvements to its outstanding range of options available to existing customers coming to the end of their deal.

Real help for first time buyers
Nationwide is offering first time buyers two new options designed to make it easier and cheaper for them to borrow by reducing the amount they pay upfront to secure a deal. First time buyers can choose between:

• a bigger discount on the reservation fee, changing from £250 to £500, or;
• a £250 reservation fee discount plus free legal fees.*

As an example, this reduces the reservation fee on a three year fixed rate mortgage at 4.44% (60% LTV) to just £396. The Society is also extending this offer to cover two additional products, the four and five year fixed rate, therefore allowing these borrowers to choose between fixing their rate over three, four or five years or taking a tracker product over three years. Additionally, they could choose to take the two year fixed or tracker rate with no fee and benefit from the new "no legal fees" offer (see below).

Better value for all home buyers
The Society is also introducing a combined reservation and legal fee* free option which is designed to help those who want to move home but are deterred by the cost of the initial fee. This option will be available on the competitive two year fixed rate available from 4.28% (up to 70% LTV) and on a new two year tracker available from 3.48%¹ (up to 70% LTV).

Even better rewards for existing customers
Nationwide has made further improvements to its already market leading set of products available to existing customers coming to the end of their deal. In addition to competitive low rates which do not increase with a higher loan to value (up to 95%) and innovative trackers which are capped at 3.99%, the Society is reducing the fee and rates on its most popular products:

• 2 year fixed rate with no fee reduced by 0.19% to 3.99% (up to 95% LTV)
• 2 year fixed rate with £495 fee reduced by 0.10% to 3.79% (up to 95% LTV)
• New 3 year fixed rate with no fee at 4.64% (up to 95% LTV)
• 3 year fixed rate with fee reduced by £500 to £495 at 4.49% (up to 95% LTV)

With effect from Friday 16 October 2009, the mortgage product range available from Nationwide will include the following:

For those buying a home:
Three year fixed rate available from 4.44% (up to 60% LTV) and four year fixed rate available from 4.94% (up to 70% LTV)

• New customers can borrow up to 85% LTV
• Existing borrowers who are moving home can borrow up to 95% LTV
• £99 booking fee (payable upfront and non-refundable)
• £896 reservation fee
• Special offer (see details above) available to first time buyers

Two year tracker available from 3.48% (up to 70% LTV) – NEW PRODUCT

• New customers can borrow up to 80% LTV
• Existing borrowers who are moving home can borrow up to 95% LTV
• £99 booking fee (payable upfront and non-refundable)
• No reservation fee
• Special offer (see details above) available to those moving home

For those switching at the end of an existing Nationwide deal:
Two year fixed rate available at 3.79% (up to 95% LTV)

• Existing borrowers switching at up to 95% LTV
• £495 reservation fee

Three year fixed rate available at 4.64% (up to 95% LTV) - NEW PRODUCT

• Existing borrowers switching at up to 95% LTV
• No reservation fee

Two year capped tracker available from 2.99% (up to 95% LTV)

• Existing customers switching at the end of a Nationwide deal at up to 95% LTV
• £999 reservation fee on loan sizes up to £149,999
• Capped at 3.99%
• Also available at 3.14% with a £1,499 reservation fee on loan sizes between £150,000 and £500,000, capped at 4.14%

Three year capped tracker available at 3.99% (up to 95% LTV)

• Existing customers switching at the end of a Nationwide deal at up to 95% LTV
• £699 reservation fee on loan sizes up to £149,999
• £1,499 reservation fee on loan sizes between £150,000 and £500,000
• Capped at 4.99%

Andy McQueen, mortgage director at Nationwide, said: "The combination of rate cuts, of up to 0.84%, and fee offers we are announcing today should really help first time buyers and seasoned home owners. We are reducing the amount that they need to pay upfront and so hope we've removed a barrier which may have prevented people from buying a home.

"Existing Nationwide borrowers at the end of their deal will also benefit from fee and rate cuts, as well as continuing to benefit from one flat rate available up to 95% LTV on many products. Like all customers choosing a tracker, they also benefit from the ability to 'switch & fix' for free during their deal should they wish to."

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

Photographs of Andy McQueen are available at www.nationwide.co.uk/mediacentre
*Free legals cover the conveyancer's professional charges relating to the house purchase only when using Legal Marketing Services (LMS). The customer will be liable for some additional fees relating to the disbursements, e.g. land registry fees and local authority searches. This new offer will replace the current £100 discount for first time buyers on the 3 year fixed and 3 year tracker products. Due to Northern Irish law, we are unable to offer free legal fees in Northern Ireland. Customers will be able to select the reservation fee discount.
**See reservation fees below.
¹ Minimum loan size of £25,000 applies to the two year fixed rate and two year tracker rate products with no reservation fee

On the 16 October 2009 Nationwide is also introducing new products into the range available to existing customers taking a further advance – further details are available on request.

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);
• 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 customers who are taking a one year fixed rate mortgage where the maximum LTV is 75%, new house purchase and remortgage customers who are taking a tracker mortgage where the maximum LTV is 80% and 75% respectively, and existing house purchase customers who are taking a tracker mortgage where the maximum LTV is 95%.
• 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 £1 million 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 0.00% or less during the tracker period, the rate the borrower pays will be 0.00% plus the agreed set percentage above the Bank of England Base Rate. This means that the rate the borrower pays will never go below 0.00% 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% for the remainder of the term. SMR has no upper limit or cap.
• A non refundable booking fee of £99 (payable upfront) applies to all mortgage products except those specifically designed for customers switching at the end of a Nationwide deal and further advance applicants.

**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, four or five year fixed or three year tracker rate mortgage deal can save either £500 on the reservation fee or £250 plus free legal fees.
• All home movers have the option of taking the two year fixed rate with no reservation fee and legal fee free offer.

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.

One year fixed rate mortgage: 2%
Two year fixed rate mortgage: 3%
Three year fixed rate mortgage: 4%
Four 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%