MortgagesOct 17 2014

Nationwide takes flexible approach

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ByAlexander Jackman

Nationwide Building Society has begun applying a scaled approach to early redemption charges on all of its fixed-rate mortgages.

Richard Napier, director of mortgages and savings for the society, said “this more flexible approach clearly demonstrates the tangible difference our way of doing business can deliver”. .

Key features

■ Charges decrease 1 percentage point a year as mortgage progresses

■ Scale consistent across two to five-year fixes

■ 5 per cent in year one to 1per cent in year five on a five-year fix

■ 2 per cent in year one to 1per cent in year two of a two-year fix

Adviser verdict

Daniel Bailey, mortgage broker for Derbyshire-based Middleton Finance, said: “It is welcome news for consumers to see charges going down rather than just remaining around 3 per cent. It is potentially another way for Nationwide to give a different angle to other lenders when rates are so low and everyone seems to be offering deals.”