Nationwide BSAug 16 2017

Nationwide reduces rates on two, three and five-year deals

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Nationwide reduces rates on two, three and five-year deals

Nationwide Building Society has cut its rates on selected two, three and five-year fixed rate mortgages by up to 0.10 of a percentage point, including products for those with smaller deposits.

All mortgage rates in the two-year fixed product range up to 95 per cent loan-to-value (LTV), have been reduced.

The 60 per cent LTV two-year fixed rate product now starts at 1.29 per cent, with a £999 fee and 1.69 per cent with no fee.

For those with a 5 per cent deposit, which are predominantly first-time buyers, the rates have been reduced to 4.09 per cent with a £999 fee and 4.49 per cent with no fee.

Selected three-year fixed rates at up to 80, 85 and 95 per cent LTV have been reduced by 0.10 of a percentage point.

Rates at up to 85 per cent LTV now start at 1.74 per cent with a £999 fee, and 2.04 per cent with no fee, while rates at 95 per cent LTV have been reduced to 4.39 per cent with a £999 fee, and 4.69 per cent with no fee.

The building society has also reduced a number of selected five-year fixed rate mortgages, with the five year fixed rate product at up to 80 per cent LTV now starting at 2.09 per cent with a £999 fee and 2.29 per cent with no fee.

Existing mortgage customers benefit from a 0.10 percentage point discount on the new customer rate.

The Society also offers a range of additional benefits for both first time buyers and home movers.

All standard mortgage valuations are now fee-free, while first time buyers receive a £500 cashback to help with the cost of moving. Remortgage customers are able to benefit from a free standard valuation and a £500 cashback for legal work.

Provider view

Henry Jordan, Nationwide’s director of mortgages, said: “We are reducing selected rates across the fixed rate product ranges, including for those with both large and small deposits.

“As well as offering a wide range of competitive mortgage rates, Nationwide also offers additional benefits to first time buyers, home movers and those remortgaging to the Society.”

Adviser view

Daniel Bailey, mortgage specialist at Middleton Finance, said: “It is estimated that about £35bn worth of mortgages are due to mature this autumn. Nationwide is ensuring they are competitive and are well placed to gain new business in the coming months.

“Nationwide is offering some very competitive rates at all levels of loan-to-value (LTV, but it is not all about the rate. Associated fees should be factored in when choosing a mortgage deal.

“First-time buyers benefiting from a free valuation and £500 cashback is welcome news as every penny counts when buying your first home.

“I am particularly pleased to see Nationwide offering a £500 cashback alternative to free legals for remortgages. The free legal services many lenders offer have come under a lot of criticism form brokers this year.”

Charges:

£999 or no fee depending on chosen product.

Verdict:

The mortgage market is extremely competitive which is good news for consumers as this is driving down mortgage rates. Nationwide in reducing their rates on selected products is showing it has a strong appetite for new business.