Nationwide

Nationwide

September 30, 2011 04:00 ET

Nationwide Revamps Its Further Advance Mortgage Range to Support Home Improvements

Rates Reducing by 0.80% on Loans of GBP 25,000 or More, With a New Range of Product Fee Free Loans Between GBP 5,000 and GBP 24,999 Introduced

LONDON, UNITED KINGDOM--(Marketwire - Sept. 30, 2011) - On 8th September 2011, Nationwide announced a new approach to the way its customers can borrow more on their existing mortgage. Homeowners looking for ways to improve their homes, rather than face the stress and expense of moving, will now be able to borrow at mortgage rates with or without a product fee using a further advance. These rates are typically lower than other forms of borrowing, such as personal loans, making it cheaper to fund home improvements, which may add value to your property, such as extensions.

From Friday 9 September 2011, Nationwide will offer:

- Further advances of £25,000 or more: aligned to the Society's core mortgage rates, representing a reduction of 0.80%. Available either with a £900 or £0 product fee, each product has a £99 non-refundable booking fee.

- Further advances between £5,000 and £24,999: no product fees, each product has a £99 non-refundable booking fee.

Martyn Dyson, head of mortgages at Nationwide, said: "We believe our new approach will ensure our deals continue to be among the most competitive in the market place, enabling us to both retain the simplicity of our range and improve the choice we can offer customers. Removing product fees for loans under £25,000 should make a real difference to those customers wishing to complete a smaller project such as a bathroom or kitchen, as our experience shows their preference is for low up front costs."

Research from Nationwide suggests that homeowners are becoming more savvy about which improvements will add value to their homes, with July seeing a three-year peak of almost 20% in loans for structural improvements. An increase in the value of the home can offer greater flexibility and more options should customers decide to review their circumstances at a later date.

Notes to editors:

- Applications are required for all products. Further details of terms and conditions are available on request.

- If you're already a Nationwide mortgage customer and want to borrow more, you could borrow up to 85% of the value of your home (including your current mortgage).

- From 9 September 2011, mortgages will be available from £5,000.

- Selected rates:

Further advance rates for loans of £25,000 or more include:

-- Two-year fixed rate at 2.64% (up to 60% LTV) with a £900 product fee, £99 non-refundable booking fee, other rates up to 85% LTV available.

-- Two-year fixed rate at 3.04% (up to 60% LTV) with £0 product fee and a £99 non-refundable booking fee, other rates up to 85% LTV available.

-- Three-year fixed rate at 2.89% (up to 70% LTV) with a £900 product fee, £99 non-refundable booking fee, other rates up to 85% LTV available.

Further advance rates for loans of £5,000-£24,999 include:

-- Two-year fixed rate at 4.04% (up to 60% LTV) with £0 product fee and a £99 non-refundable booking fee, other rates up to 85% LTV available.

-- Three-year fixed rate at 4.19% (up to 70% LTV) with £0 product fee and a £99 non-refundable booking fee, other rates up to 85% LTV available.

-- Five-year fixed rate at 4.89% (up to 70% LTV) with £0 product fee and a £99 non-refundable booking fee, other rates up to 85% LTV available.

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.

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