Would-be homeowners are set to benefit from low-deposit, competitive mortgages as Nationwide Building Society today announces the products and rates across its 90 per cent Loan-to-Value (LTV) first-time buyer range.
This follows on from Britain’s second largest mortgage lender announcing on Monday that it is increasing the lending limit for many first-time buyers to provide further support to them and the housing market at a difficult time.
From Monday 20 July, the following 90% LTV products will be open to first-time buyers with no set limit on the number available:
- Two-year fixed rates: 2.49% with a £999 fee; 2.74% with no fee
- Three-year fixed rates: 2.79% with a £999 fee; 2.99% with no fee
- Five-year fixed rates: 2.79% with a £999 fee; 2.99% with no fee
- Two-year tracker rates: 2.59% with a £999 fee; 2.84% with no fee
All products are available direct with Nationwide (telephone, branch and online) as well as via brokers. As with all first-time buyer mortgages with Nationwide, they come with £500 cashback and free valuations.
In order to lend responsibly as the market continues to recover, Nationwide has put in place enhanced lending criteria for the new products. The property must be a house of at least two-years old, while applicants will be subject to enhanced affordability and credit score criteria. The maximum term is 25 years.
Henry Jordan, Director of Mortgages at Nationwide Building Society, said: “Our return to the 90 per cent market is aimed at helping people into a home of their own, but it is also important to give first-time buyers a choice to suit their personal situation. That is why we are launching a range of fixed and tracker rate mortgages with different term and fee options. Given the competitive rates on offer, we expect these to prove extremely popular when they launch on Monday. By not having a set limit on the number of mortgages available, we aim to help as many first-time buyers get a foot on the ladder as we can at a time many may feel like they have been frozen out.”
The Society will continue to review the market and its products to ensure it is lending responsibly at the same time as helping first-time buyers achieve their housing goals.
In addition, on Thursday 16 July, Nationwide will be increasing rates on its 85 per cent LTV range by up to 0.45%, while rates on the Society’s shared equity range at 60% and 75% LTV range will increase by 0.15%.
Full details of these rate changes can be found here.
Henry Jordan, Nationwide’s Director of Mortgages, continued: “These rate changes reflect a continually evolving market but will also ensure that the Society can support all mortgage applications and maintain the levels of service expected of us, especially once our new 90 per cent LTV range launches on Monday.”
