27 May 2020

Nationwide reduces rates on fixed rate mortgages

From Thursday 28 May, Nationwide Building Society is reducing rates on selected two, three, five and ten-year fixed rate switcher mortgage products, as well as its two-year tracker mortgages, by up to 0.25 per cent. The Society will also be reducing rates on its range with a £1,499 fee and its Later Life mortgage products (Retirement Interest Only and Retirement Capital and Interest) by up to 0.40 per cent.

Remortgage range with £1,499 fee

Rates for the two-year fixed products up to 60 per cent LTV are reduced by 0.05% to 1.14% with £1,499 fee.
Rates for the five-year fixed rate products up to 60 per cent LTV are reduced by 0.05% to 1.34% with a £1,499 fee.
Rates for the two-year tracker products up to 60 per cent LTV are reduced by 0.05% to 1.24% with a £1,499 fee.

Existing member switcher range

60 per cent LTV: two-year fixed rates reduced by 0.25% to 1.14% with a £999 fee and by 0.05% to 1.44% with no fee.
60 per cent LTV: three and five-year fixed rates reduced by 0.05% to 1.34% with a £999 fee; 1.64% with no fee.
60 per cent LTV: ten-year fixed rates reduced by 0.20% to 2.14% with a £999 fee; 2.24% with no fee.
75 per cent LTV: two-year fixed rates reduced by 0.10% to 1.24% with a £999 fee; 1.74% with no fee.
75 per cent LTV: three and five-year fixed rates reduced by 0.10% to 1.49% with a £999 fee.
80 and 85 per cent LTV: two-year fixed rates reduced by up to 0.15% to 1.49% with a £999 fee; 1.84% with no fee.
80 per cent LTV: three and five-year fixed rates reduced by 0.10% to 1.94% with no fee.
85 per cent LTV: three and five-year fixed rates reduced by 0.05% to 1.89% with a £99 fee; 1.99% with no fee.
90 per cent LTV: two-year fixed rates reduced by 0.15% to 2.09% with no fee.
90 per cent LTV: three and five-year fixed rates reduced by 0.05% to 2.39% with no fee.

In addition to its fixed rate switcher products, the Society is also reducing rates on its two-year trackers:

60 per cent LTV reduced by 0.15% to 1.54% with no fee.
75 per cent LTV reduced by 0.05% to 1.39% with a £999 fee.
80 per cent LTV reduced by 0.25% to 1.59% with a £999 fee.
85 per cent LTV reduced by 0.05% to 1.79% with a £999 fee.

Later Life (Retirement Capital & Interest and Retirement Interest Only)

Two-year fixed rate reduced by 0.40% to 2.59%.
Three-year fixed rate reduced by 0.40% to 2.79%.
Ten-year fixed rate reduced by 0.40% to 3.39%.

Henry Jordan, Nationwide’s Director of Mortgages, said: “While the housing market slowly begins to open up again, the mortgage market continues to remain as competitive as ever. Although many borrowers continue to like the security of fixing their mortgage repayments, we know there are some who want to take advantage of these historic low interest rates by going for a tracker mortgage. These reductions demonstrate our commitment to offering competitive rates on both fixed and trackers across a range of LTVs, ensuring we support borrowers no matter how much deposit they have.”

Nationwide offers a range of additional benefits for first time buyers, home movers and those remortgaging to the Society. All standard mortgage valuations are fee-free, while first time buyers receive a £500 cashback to help with costs and those remortgaging to the Society can choose between £500 cashback or free standard legals.

The Society has also announced a five-point support package designed to help protect the homes and finances of those who have been hit hard by Covid-19. Nationwide is offering extended support for people still financially impacted by the outbreak and who may be coming to the end of an initial three-month mortgage payment support period, which begin to expire next month.

Notes to editors

Notes to Editors:

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

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.

Free Standard Valuation:

All standard valuations are fee free.

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

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.

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.