Nationwide reduces rates on high LTV products

Nationwide is reducing its 80, 85 and 90 per cent loan-to-value products to attract first-time buyers and home movers with small deposits.

All fixed rates available at 90 per cent loan-to-value (LTV) will be cut by 0.30 per cent and fixed and tracker rates at 80 per cent LTV and 85 per cent LTV by 0.10 per cent for new applications.

First time buyers will continue to receive a £500 discount on the product fee for all mortgages with a £900 product fee. An additional 0.1 per cent reduction is available on all rates for new applications from existing Nationwide mortgage customers.

Key highlights include:

• New 3.99% two-year fixed rate up to 90% LTV with £900 product fee (3.89% for existing Nationwide mortgage customers)
  • First time buyers pay a reduced product fee of £400
  • Non-refundable booking fee of £99 is payable on reservation

• New 3.24% two-year fixed rate up to 85% LTV with £900 product fee (3.14% for existing Nationwide mortgage customers)
  • First time buyers pay a reduced product fee of £400
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • Non-refundable booking fee of £99 is payable on reservation

• New 2.79% two-year fixed rate up to 80% LTV with £900 product fee (2.69% for existing Nationwide mortgage customers)
  • First time buyers pay a reduced product fee of £400
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • A non-refundable booking fee of £99 is payable on reservation

• New 3.09% three-year fixed rate up to 80% LTV with £900 product fee (2.99% for existing Nationwide mortgage customers)
  • First time buyers pay a reduced product fee of £400
  • Remortgage borrowers receive a free standard valuation and the choice of either free standard legal fees or £250 cashback
  • Non-refundable booking fee of £99 is payable on reservation

Tracie Pearce, head of group mortgages at Nationwide, said: “These reductions at 80-90 per cent LTV demonstrate how Nationwide is committed to supporting both first time buyers and home movers, enabling those with smaller deposits to access very competitive rates.

“In particular, the reduction of two year fixed rates available up to 90 per cent LTV by 0.30 per cent means that we are offering rates to both new and existing customers below 4 per cent.”