Mar 31, 2008
Nationwide increases mortgage rates
Nationwide Building Society has announced an increase in the rates on its fixed rate and tracker mortgages.
Nationwide’s two year fixed rate mortgage with a £1,499 fee and £1,999 fee, two year tracker mortgage with no fee and two year tracker mortgage with a £1,499 fee will be withdrawn. Full details of the new product range are shown below.
The changes announced follow significant increases in the cost of funding, and recent moves by a number of high street lenders who have either increased rates or withdrawn some products or both.
Matthew Carter, Nationwide’s director of mortgages, said: “Nationwide sympathises with anyone who is concerned about the availability of affordable mortgages. We continue to offer our customers a wide range of fixed and variable rate mortgages up to 95% loan to value with, as always, a focus on prudent and responsible lending rather than volume.”
Key Features of the Product Range
* Range of flexible features available on all new mortgages – to overpay, underpay or take a payment holiday
* Interest is calculated on a daily basis on all products
* No Higher Lending Charge or fees for high percentage borrowing
* BMR is guaranteed to be no more than 2% above the Bank of England base rate
* No compulsory insurance
* Valuation fee varies based on purchase price of property and not product chosen
* Valuation fees are non-refundable for home buyers and home movers
* No valuation fees or legal fees for borrowers who are remortgaging
BASE MORTGAGE RATE (BMR – fully flexible mortgage) – effective from 1 March 2008
| Loan to Value | Interest Rate |
|---|---|
| Up to 95% | 6.74% |
- Available to all borrowers up to 95% LTV
- No early repayment fees
- No reservation fee
- Flexibility:
- Overpayments, no minimum or maximum
- Underpayments and draw downs up to limit of overpayment reserve
- Apply for Flexible Advance, the additional borrowing facility
ALL RATES FOR FIXED RATE PRODUCTS – effective from 28 March 2008
HOUSE PURCHASE (New and existing Nationwide mortgage borrowers)
| Product | With reservation fee | No reservation fee | Reservation fee | |
|---|---|---|---|---|
|
Two year fixed rate A |
75% LTV |
5.95% |
6.35% |
£499 |
|
90% LTV |
6.15% |
6.55% |
£499 |
|
|
95% LTV |
6.65% |
7.05% |
£499 |
|
|
Two year fixed rate B |
75% LTV |
5.82% |
N/A |
£999 |
|
90% LTV |
6.02% |
N/A |
£999 |
|
|
95% LTV |
6.52% |
N/A |
£999 |
|
|
Three year fixed rate |
75% LTV |
5.95% |
N/A |
£499 |
|
90% LTV |
6.15% |
N/A |
£499 |
|
|
95% LTV |
6.65% |
N/A |
£499 |
|
|
Five year fixed rate |
75% LTV |
5.83% |
N/A |
£499 |
|
90% LTV |
6.03% |
N/A |
£499 |
|
|
95% LTV |
6.43% |
N/A |
£499 |
|
|
10 year fixed rate |
75% LTV |
5.88% |
N/A |
£499 |
|
90% LTV |
6.08% |
N/A |
£499 |
|
|
95% LTV |
6.48% |
N/A |
£499 |
|
|
25 year fixed rate |
75% LTV |
6.18% |
N/A |
£599 |
|
90% LTV |
6.38% |
N/A |
£599 |
|
|
95% LTV |
6.78% |
N/A |
£599 |
|
REMORTGAGORS/ SWITCHERS/ FURTHER ADVANCES (New and existing Nationwide mortgage borrowers)
| Product | With reservation fee | No reservation fee | Reservation fee | |
|---|---|---|---|---|
|
Two year fixed rate A |
75% LTV |
6.18% |
6.58% |
£499 |
|
90% LTV |
6.38% |
6.78% |
£499 |
|
|
95% LTV |
6.88% |
7.28% |
£499 |
|
|
Two year fixed rate B |
75% LTV |
5.98% |
N/A |
£999 |
|
90% LTV |
6.18% |
N/A |
£999 |
|
|
95% LTV |
6.68% |
N/A |
£999 |
|
|
Three year fixed rate |
75% LTV |
6.18% |
N/A |
£499 |
|
90% LTV |
6.38% |
N/A |
£499 |
|
|
95% LTV |
6.88% |
N/A |
£499 |
|
|
Five year fixed rate (remortgage and further advance) |
75% LTV |
5.83% |
N/A |
£499 |
|
90% LTV |
6.03% |
N/A |
£499 |
|
|
95% LTV |
6.43% |
N/A |
£499 |
|
|
Five year fixed rate (switchers only) |
75% LTV |
N/A |
5.83% |
N/A |
|
90% LTV |
N/A |
6.03% |
N/A |
|
|
95% LTV |
N/A |
6.43% |
N/A |
|
|
10 year fixed rate |
75% LTV |
5.88% |
N/A |
£499 |
|
90% LTV |
6.08% |
N/A |
£499 |
|
|
95% LTV |
6.48% |
N/A |
£499 |
|
|
25 year fixed rate |
75% LTV |
6.18% |
N/A |
£599 |
|
90% LTV |
6.38% |
N/A |
£599 |
|
|
95% LTV |
6.78% |
N/A |
£599 |
|
FIXED RATE MORTGAGE INFORMATION – correct as at 27 March 2008
- Available to all house purchase borrowers and customers remortgaging up to maximum 95% LTV
- Reservation fee £499/£599/£999. Two year no fee deals also available
- Automatic transfer to BMR at end of fixed rate period
- Track application via text or email update
- Flexibility:
- Overpayments (no minimum, maximum of £500 per month)
- Underpayments and draw downs up to limit of overpayment reserve
- Apply for Flexible Advance or Further Advance, the additional borrowing facility
- Full flexibility on BMR at end of the fixed rate
Early repayment fees for fixed rate mortgages
For each year of the remaining repayment fee period, a maximum percentage of the outstanding loan is payable as detailed below. Fixed rates allow overpayments of up to £500 per month without the need to pay a repayment fee.
2 year fixed rate mortgage: 1.5%
3 year fixed rate mortgage: 2.0%
5 year fixed rate mortgage: 3.0%
10 year fixed rate mortgage: 3.0%
25 year fixed rate mortgage 3.0% during first 10 years only – then no charges.
ALL RATES FOR TRACKER PRODUCTS – effective from 28 March 2008
HOUSE PURCHASE (New and existing Nationwide mortgage borrowers)
| Product | With reservation fee | No reservation fee | Reservation fee | |
|---|---|---|---|---|
|
Two year tracker |
75% LTV |
6.40% |
N/A |
£599 |
|
90% LTV |
6.60% |
N/A |
£599 |
|
|
95% LTV |
7.00% |
N/A |
£599 |
|
|
Lifetime tracker |
75% LTV |
N/A |
6.59% |
N/A |
|
90% LTV |
N/A |
6.79% |
N/A |
|
REMORTGAGORS/ SWITCHERS/ FURTHER ADVANCES (New and existing Nationwide mortgage borrowers)
| Product | With reservation fee | No reservation fee | Reservation fee | |
|---|---|---|---|---|
|
Two year tracker |
75% LTV |
6.50% |
N/A |
£599 |
|
90% LTV |
6.70% |
N/A |
£599 |
|
|
95% LTV |
7.10% |
N/A |
£599 |
|
|
Lifetime tracker |
75% LTV |
N/A |
6.69% |
N/A |
|
90% LTV |
N/A |
6.89% |
N/A |
|
TRACKER MORTGAGE INFORMATION – correct as at 27 March 2008Available to all house purchase borrowers and customers remortgaging up to maximum 95% LTV -and lifetime tracker limited to maximum 90% LTV
- Reservation fee £599
- The Lifetime tracker product comes with no reservation fee as standard
- Automatic transfer to BMR at end of deal period
- Track application via text or email update
- Flexibility:
- Overpayments (no minimum, maximum of £500 per month)
- Underpayments and draw downs up to limit of overpayment reserve
- Apply for Flexible Advance, the additional borrowing facility
- Full flexibility on BMR at end of the deal
Early repayment fees for tracker rate mortgages
For each year of the remaining repayment fee period, a maximum percentage of the outstanding loan is payable as detailed below. Fixed rates allow overpayments of up to £500 per month without the need to pay a repayment fee.
2 year tracker: 1.5%
Lifetime tracker: 3.0% (first five years of deal only)
