Nationwide reduces two, three and five year fixed rate mortgages

10 January 2017

From Wednesday 11 January, Nationwide Building Society is cutting 2 year, 3 year and 5 year fixed rate mortgage products by up to 0.20%.

Rates across the full range of 2 year fixed products up to 95 per cent loan to value (LTV) have been reduced, with the 60 per cent 2 year fixed rate product starting at 1.29% with a £999 fee and 1.69% with no fee. For those with a 5 per cent deposit, predominantly first time buyers, rates are 3.69% with a £999 fee and 4.09% with no fee. 

The 3 year fixed rate products start at 1.59% with a £999 fee and 1.89% with no fee with a 40 per cent deposit, ranging to 4.09% with a £999 fee and 4.39% with no fee for those with a 5 per cent deposit. 

For the 5 year fixed rate product range, rates start at 1.89% with a £999 fee and 2.09% with no fee at 60 per cent LTV, up to 4.49% and 4.69% respectively for products at 95 per cent LTV.

In addition, the rate for the 75% LTV 5 year tracker product with a £999 fee is reduced to 2.14%. All Nationwide tracker mortgage products currently have no Early Redemption Charges (ERCs).

Existing mortgage customers benefit from a 0.10% discount on the new customer rate, as well as a £250 cashback for mortgage customers switching to a new deal or moving home.  

These competitive rates are complemented by the Society’s range of additional benefits for both first time buyers and home movers. All standard mortgage valuations are now fee-free, while first time buyers receive a £500 cashback to help with the cost of moving. Remortgage customers are able to benefit from a free standard valuation and the choice between free standard legal work and £250 cashback.

Henry Jordan, Nationwide’s Head of Mortgages, said: “We are reducing rates across the range of fixed rate products, for those with both large and small deposits. As well as offering additional member benefits to first time buyers, home movers and those remortgaging to the Society, we are extending member choice as well as offering a wide range of competitive mortgage rates.”

Notes to Editors

Key features of Nationwide’s fixed and tracker mortgage product range for new applications

1. Flexibility:

  • Overpayments (maximum of 10% of the initial amount borrowed per annum where an ERC applies to the product. Where a product is not subject to an ERC, there is no maximum overpayment allowance). 
  • Apply for a Further Advance, the additional borrowing facility.

2. Free Standard Valuation:

  •  All standard valuations are fee free. Cashback is payable one month after completion of the mortgage, with the exception of the following:
  • For Flex customers applying through the introduced channel the cashback is payable up to three months after completion of the mortgage
3. Maximum LTV:
  • 95% LTV mortgages are available to:
    • First-time buyers and home movers
    • Existing Nationwide mortgage borrowers switching at the end of their current deal or moving home
    • Save to Buy customers
  • Maximum 75% LTV on new build flats and 85% LTV on new build houses 

4. Base Mortgage Rate

  • Any mortgage products reserved on or before 29 April 2009 will revert to the Base Mortgage Rate (BMR). If the borrower chooses to switch to a new Nationwide mortgage product, the new product will currently revert onto our Standard Mortgage Rate (SMR).
  • Both are variable rates which we may vary in accordance with our 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 the borrower chooses to switch to a new product from a BMR, it is not possible to switch back to the BMR at a later date.
  • All mortgages reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility.  Any mortgages reserved after this date will no longer include these facilities.
  • If the borrower is currently letting their property they will be unable to switch to a new mortgage deal and their mortgage will automatically revert to the Nationwide variable rate as stated in their mortgage offer.

    5. Early repayment charges (ERCs)

    If you repay a mortgage early or make an overpayment of more than your overpayment allowance, you may need to pay an Early Repayment Charge. For Nationwide mortgages reserved after 8 October 2014, you would need to pay a percentage of the outstanding loan amount as follows:

    Fixed Rate Deal Period
       2 years  3 years  4 years  5 years  10 years
     Year 1  2%  3%  4%  5%  7%
     Year 2  1%  2%  3%  4%  7%
     Year 3    1%  2%  3%  7%
     Year 4      1%  2%  7%
     Year 5        1%  6%
     Year 6          5%
     Year 7          4%
     Year 8          3%
     Year 9          2%
     Year 10          1%

    ERCs don’t currently apply to our Tracker Rate mortgages.

    *Flexclusive mortgages are available to Nationwide main current account holders who:
    1. Hold a FlexOne account and be aged 18 or over, or hold a FlexAccount with a Visa debit card (not cash card or cash card+) and have: 

    1. Been paying in £750+ a month for the last 3 months (excluding internal transfers);
    2. Completed an account switch to us (from a non-Nationwide account) using our Current Account Switch Team in the last 4 months; or

    2. Hold a FlexDirect or FlexPlus account

    About Nationwide

    Nationwide is the world's largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million customers.

    Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.

    Please note: If you are a customer looking for information on our products and services, please visit the main website.