Nationwide

Nationwide

September 02, 2011 02:30 ET

Nationwide Reduces All Five-Year Fixed Mortgage Rates

Five-Year Fixed Rate With £999 Fee at 3.69% (Up to 70% LTV) Available

LONDON, UNITED KINGDOM--(Marketwire - Sept. 2, 2011) - Nationwide has reduced all five-year fixed mortgage rates by 0.1% for new applications. All changes came into effect Thursday 1 September 2011.

Martyn Dyson, head of mortgages at Nationwide, said: "We know from our mortgage consultants and brokers that five-year fixed rate products are popular with borrowers, so our latest rate reduction ensures our deals continue to be amongst the most competitive in the market place."

Five-year fixed rate available at 3.69% (up to 70% LTV)

  • £900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and remortgage customers
  • £500 product fee discount for first-time buyers
  • Other rates up to 85% LTV also available

Five-year fixed rate available at 3.89% (up to 70% LTV)

  • No product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and remortgage customers
  • Other rates up to 85% LTV also available

All other Nationwide mortgage rates remain unchanged.

About Nationwide

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 and personal loans. With around 16 million members, Nationwide has a relationship with around 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 performances and prudent business model means that Nationwide is included in Global Finance magazine's Top 50 Safest Banks in the World.

Notes to editors:

  • 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.
  • Maximum LTV:
    • Lending above 85% LTV is available on three and five-year fixed rate mortgages.
    • 95% LTV mortgages are available to existing Nationwide mortgage borrowers switching at the end of their current deal or moving home and Save to Buy customers.
    • 90% LTV mortgages are available to existing Nationwide mortgage borrowers switching at the end of their current deal or moving home, Save to Buy customers and main current account customers (eligibility criteria apply – see here for details).
    • First-time buyers can access 90% or 95% LTV products through Save to Buy and 90% LTV products through Flexclusives.
    • 75% on new build flats and 90% on new build houses.
  • Tracker 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.
  • 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 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%
      • Two-year tracker rate mortgage: 2.5%
      • Three-year tracker rate mortgage: 3%

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