Nationwide has introduced a new suite of products that helps homeowners borrow funds to pay for home improvements.
Homeowners looking for ways to improve their homes, rather than move, will be able to borrow at mortgage rates with or without a product fee using a further advance. These rates are typically lower than other forms of borrowing, such as personal loans, making it cheaper to fund home improvements
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Nationwide now offers:
Further advances of £25,000 or more: aligned to the society’s core mortgage rates, representing a reduction of 0.80 per cent. Available either with a £900 or £0 product fee, each product has a £99 non-refundable booking fee.
Further advances between £5,000 and £24,999: no product fees, each product has a £99 non-refundable booking fee.
Martyn Dyson, head of mortgages at Nationwide, said: “We believe our new approach will ensure our deals continue to be among the most competitive in the market place, enabling us to both retain the simplicity of our range and improve the choice we can offer customers. Removing product fees for loans under £25,000 should make a real difference to those customers wishing to complete a smaller project such as a bathroom or kitchen, as our experience shows their preference is for low up front costs.”
Research from Nationwide suggests that homeowners are becoming more savvy about which improvements will add value to their homes, with July seeing a three-year peak of almost 20 per cent in loans for structural improvements. An increase in the value of the home can offer greater flexibility and more options should customers decide to review their circumstances at a later date.
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