March 12, 2012 08:59 ET

Nationwide Launches NewBuy Products

LONDON, UNITED KINGDOM--(Marketwire - March 12, 2012) - Nationwide Building Society is showing its support for today's launch of the NewBuy scheme by introducing a NewBuy mortgage range.

The Society is offering borrowers who buy a new-build house or flat in England with a builder that is registered under the NewBuy scheme the option of a three or five-year fixed rate mortgage at 95% LTV.

New rates include:

Three-year fixed rate available at 5.69% (95% LTV)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
  • £500 product fee discount for first-time buyers
  • Product fee-free option available at 5.99%, £99 booking fee will still apply

Five-year fixed rate available at 5.99% (95% LTV)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
  • £500 product fee discount for first-time buyers
  • Product fee-free option available at 6.19%, £99 booking fee will still apply

These rates match those currently available for customers purchasing a second hand property at 90% LTV.

The first phase will see products available to intermediaries only. The Society will make the products available through branches at a later date.

Andrew Baddeley-Chappell, Head of Mortgage Strategy and Policy at Nationwide, said: "Nationwide is committed to supporting the NewBuy scheme and is one of just a handful of lenders making products available from launch.

"The widening gap in housing provision is undisputed. Nationwide is supportive of this initiative that enables a return to lower deposit mortgages within the new-build sector.

"NewBuy will boost the supply of properties, increase employment, and provide affordable mortgages to those with more modest deposits, including first time buyers.

"This is just another example of how Nationwide is on the borrower's side and is committed to helping them access affordable and competitive mortgage deals."

Notes to editors:

  • For further details on the NewBuy scheme visit
  • NewBuy available for mortgages of between 90.01% and 95% LTV.
  • Maximum property value of £250,000.
  • Outside the NewBuy scheme, Nationwide has a maximum LTV of 85% for new-build houses and 75% for new-build flats.
  • Applications are required for all products. Further details of terms and conditions are available on request.
  • Mortgages are subject to underwriting criteria.

Key features of the fixed and tracker mortgage product range for new applications

  • Flexibility:
    • Overpayments (no minimum; maximum of £500 per month on fixed and tracker mortgage deals).
    • Apply for a Further Advance, the additional borrowing facility.
  • Valuation fee:
    • Varies based on purchase price of property and not product chosen.
    • Non-refundable for home buyers and home movers.
    • No standard valuation fees or standard legal fees for borrowers who are remortgaging.
  • Free legal fees for house purchase cover the conveyancer's professional charges relating to the house purchase only when using one of our panel legal firms. 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, Nationwide is unable to offer free legal fees in Northern Ireland.
  • 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, it is not possible to switch back to the BMR at a later date.
  • Standard Mortgage Rate
    • Mortgage products reserved on or after 30 April 2009 revert to the Standard Mortgage Rate (SMR).
    • The SMR is a variable rate which may vary in accordance with Nationwide's mortgage terms and conditions.
    • 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.
    • Early repayment charges for fixed rate and tracker mortgages

Throughout the deal period, a percentage of the outstanding loan is payable as detailed below. Overpayments of up to £500 per month are permitted 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%
  • Two-year tracker rate mortgage: 2.5%
  • Three-year tracker rate mortgage: 3%

Nationwide Building Society is the world's largest building society and a top-three provider of mortgages and savings in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. With around 16 million members, Nationwide has a relationship with almost a quarter of the UK population.

Since the credit crunch began in 2007, Nationwide has remained profitable against a very difficult economic environment. In the year 2010/11 Nationwide made a strong underlying profit of £276 million - up 30% from the previous year. Its strong financial performance and prudent business model means that Nationwide is included in Global Finance magazine's Top 50 Safest Banks in the World.

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