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Header: Press Releases
 

Date issued: 7 Jan 2010

NATIONWIDE ANNOUNCES NEW MORTGAGE DEALS
Society cuts selected fixed and tracker rates for house purchase

With effect from Friday 8 January 2010 Nationwide will cut rates on a number of fixed and tracker rate products available to those buying a home. The majority of cuts will be made on rates available on loans of between 70% and 85% LTV. The biggest reduction of 0.60% has been made on selected two year fixed rate deals available to house purchase customers at 80% LTV.

As well as other products, the mortgage product range available from Nationwide will include the following:

For those buying a home:

Two year fixed rate available from 3.69% (up to 70% LTV) and two year tracker available from 2.64% (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

Two year fixed rate available from 3.99% (up to 70% LTV) and two year tracker available from 2.94% (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)
  • No reservation fee; free legals available

Three year fixed rate available from 4.39% (up to 70% LTV) and three year tracker available from 2.99% (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 (reservation fee discount available to first time buyers of £500 or £250 plus free legals)

Andy McQueen, mortgage director at Nationwide, said: “We are making a number of rate cuts across our mortgage range of up to 0.60%, with the biggest cut being on selected two year products available with a 20% deposit. This, together with the special offers we have available for first time buyers and house purchasers, is good news for those looking to move home in the New Year.”

-ends-

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

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% and remortgage customers who are taking a tracker mortgage where the maximum LTV is 75%.
  • The maximum LTV is 75% on new build flats and 90% on new build houses.
  • The maximum borrowing limit is £1 million. Product limits also apply.
  • 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.
  • 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.
  • Any mortgage products reserved on or before 29th April 2009 revert to the Base Mortgage Rate (BMR). If a customer chooses to switch to a new Nationwide mortgage product, the new product will revert onto the Standard Mortgage Rate (SMR). Both the BMR and SMR are variable rates which may vary in accordance with Nationwide’s mortgage terms and conditions. However, the BMR is guaranteed to be no more than 2% above the Bank of England base rate, whilst the SMR has no upper limit or cap. If a customer chooses to switch to a new product, it is not possible to switch back to the BMR at a later date.

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 and tracker rate with no reservation fee and legal fee free offer.
  • Minimum loan size of £25,000 applies to the two year fixed rate and two year tracker rate products with no reservation fee. Minimum loan size of £5,000 applies to the three year no reservation fee further advance product.

Reservation fee and legal fee offer details

  • First time buyers can choose between a reservation fee discount of £500 or a discount of £250 plus free legals on the 3, 4 or 5 year fixed rates or a tracker over 3 years.
  • First time buyers and other home buyers can also choose a combined reservation and legal fee free option on one of the 2 year fixed or 2 year tracker rate products (further details available on request).
  • 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. 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.

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%