Nationwide increases mortgage rates
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- Published:Monday, March 31st, 2008
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fee and £1,999 fee, two year tracker mortgage with no fee and two year tracker mortgage with a £1,499 fee will be withdrawn.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in the cost of funding, and recent moves by a number of high street lenders who have either increased rates or withdrawn some products or both.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)


