Nationwide cuts NewBuy rates
Lender says its new schemes will help to increase access to lower deposit mortgages within the new-build sector.
Nationwide Building Society is cutting the rates on its NewBuy and Mi New Home mortgage range by up to 0.45 per cent and introducing a new two-year deal, all with no product fees.
The society currently offers borrowers the option of a three or five-year fixed rate mortgage at 95 per cent loan to value if they buy a new-build house or flat in England or Scotland with a builder that is registered under these schemes.
From tomorrow (4 January), the society is adding a two-year deal to the range. In addition, all NewBuy and Mi New Home mortgages will no longer include a £900 product fee, while the maximum loan increases from £250,000 to £350,000. A non-refundable £99 booking fee is payable up-front.
The new two-year fixed rates are set at 4.34 per cent for existing customers and 4.44 per cent for first-time buyers and those moving home.
The new three-year fixes include a 4.44 per cent rate for existing customers and 4.54 per cent rate for first-time buyers and those moving home.
Lastly, the new five-year fixed rate for existing customers is 4.64 per cent and for first-time buyers and those moving home it is 4.74 per cent.
The NewBuy products are only currently available via intermediaries.
Andrew Baddeley-Chappell, head of mortgage strategy and policy at Nationwide, said: “These schemes aim to address the growing gap in housing provision in Britain by helping to increase access to lower deposit mortgages within the new-build sector.
“They help keep Britain’s property market moving and it is another example of how Nationwide is ‘On Your Side’.”