Nationwide is offering new mortgage rates, including some below 5%, for first-time buyers (FTBs) and home movers with less than 5% deposit.
This latest round of rate cuts from one of the ‘big six’ lenders will come as welcome news as it offers more affordable options for those stepping onto the property ladder or moving with a small deposit.
One of the highlights for first-time buyers is a five-year fixed rate at 95% loan-to-value (LTV) with a 4.99% rate. A 95% LTV deal is for customers who need to borrow up to 95% of their property’s value because they have a 5% deposit.
This product is also available for an LTV of 90%. However, both this and the 95% version come with a fee of £1,499.
Mortgage experts advise anyone taking out a new deal should always factor in both the fee and interest rates. It’s always a good idea to speak to a mortgage adviser to weigh up whether a lower rate is actually good value if there is also hefty fee attached.
Recent analysis by Moneyfactscompare.co.uk showed average fees have risen by £89 since March 2020. Borrowers paying fees typically pay around £1,129.
Nevertheless, Nationwide’s new offering will still be welcomed – especially with rates below 5% on offer for first-time buyers.
There are other 4.99% deals in the new price range being launched on Friday 21 March. These are aimed at home movers and most come with a £999 fee.
For example, new customers who are moving are being offered a five-year fixed rate at 95% LTV with a £999 fee at 4.99% – a reduction of 0.05%.
Meanwhile the same customers can benefit from a two-year fixed rate at 90% LTV with no fee is 4.99% – this has been reduced by 0.21%.
For existing customers switching to a new deal with Nationwide and equity of 10% there is a two-year fixed rate at 90% LTV with no fee, also at 4.99%.
Carlo Pileggi, Nationwide’s senior manager – mortgages, said: “Our latest rate cuts will be welcome news to borrowers with smaller deposits, particularly first-time buyers, and we’re pleased to once again be offering rates below five per cent for those with a 5% deposit.
“The introduction of our new £1,499 fee products will also widen the choice of products available for those who are considering Nationwide for their mortgage needs.”
