It will give borrowers a choice of paying the reservation fee upfront or paying a slightly higher rate over the deal period and having no reservation fee to pay at all. These new rates will be lower than most other remortgage deals available in the market, including those where the reservation fee is still payable upfront.
Members choosing this new payment option will choose from exactly the same mortgage range, offering flexibility and daily interest. The new rates for the ‘no reservation fee’ option will be from just 20 basis points higher than the Society’s existing mortgage prices. Meanwhile, Nationwide say the current range of fixed and tracker mortgages remain competitive both in terms of rates and fees. All rates and products remain available to both new and existing customers.
Stuart Bernau, executive director, said: “At Nationwide, we listen to our Members and understand that while they like our low rates, sometimes they cannot or do not want to pay an upfront fee. That is why we’re introducing the new ‘no reservation fee’ option. This complements our existing mortgage rates and offers customers even more choice. The popularity of our mortgage flexibility, such as the opportunity to overpay and take payment holidays, tells us how much borrowers value this choice, enabling them to manage their mortgage in the way that best suits them.”
