Nationwide is offering first time buyers two new options designed to make it easier and cheaper for them to borrow by reducing the amount they pay upfront to secure a deal. First time buyers can choose between:
• a bigger discount on the reservation fee, changing from £250 to £500, or;
• a £250 reservation fee discount plus free legal fees.
As an example, this reduces the reservation fee on a three year fixed rate mortgage at 4.44% (60% LTV) to £396. The Society is also extending this offer to cover two additional products, the four and five year fixed rate, therefore allowing these borrowers to choose between fixing their rate over three, four or five years or taking a tracker product over three years. Additionally, they could choose to take the two year fixed or tracker rate with no fee and benefit from the new “no legal fees” offer.
The Society is also introducing a combined reservation and legal fee free option which is designed to help those who want to move home but are deterred by the cost of the initial fee. This option will be available on the competitive two year fixed rate available from 4.28% (up to 70% LTV) and on a new two year tracker available from 3.48% (up to 70% LTV).
Nationwide has made further improvements to its set of products available to existing customers coming to the end of their deal. In addition to competitive low rates which do not increase with a higher loan to value (up to 95%) and trackers which are capped at 3.99%, the Society is reducing the fee and rates on its most popular products:
• 2 year fixed rate with no fee reduced by 0.19% to 3.99% (up to 95% LTV)
• 2 year fixed rate with £495 fee reduced by 0.10% to 3.79% (up to 95% LTV)
• New 3 year fixed rate with no fee at 4.64% (up to 95% LTV)
• 3 year fixed rate with fee reduced by £500 to £495 at 4.49% (up to 95% LTV)
Andy McQueen, mortgage director at Nationwide, said: “The combination of rate cuts, of up to 0.84%, and fee offers we are announcing today should really help first time buyers and seasoned home owners. We are reducing the amount that they need to pay upfront and so hope we’ve removed a barrier which may have prevented people from buying a home.
“Existing Nationwide borrowers at the end of their deal will also benefit from fee and rate cuts, as well as continuing to benefit from one flat rate available up to 95% LTV on many products. Like all customers choosing a tracker, they also benefit from the ability to ‘switch & fix’ for free during their deal should they wish to.”
