Mortgage deals and offers from the Nationwide Building Society
Nationwide Reduces its Mortgage Rates Again!
Research has revealed that competition in the market is growing, bringing with it benefits to consumers shopping around for the mortgage deal to best suit their needs.
According to accountancy firm KPMG, the UK’s building societies are getting back to ‘business as usual’ following the stresses of the financial crisis. Read more
Nationwide Grabs a Bigger Slice of Mortgage Market.
One of Britain’s biggest building society’s, Nationwide handed out around £800 million to its pre 2009 mortgage borrowers last year which was largely at the expense of many of its savers.
When the bank of England base rate was 5 per cent many lenders offered mortgages that would track the bank rate for the whole 25 year length of the loan.
Nationwide promised holders of its standard variable rate (SVR) loans, what it called Base Mortgage Rate (BMR) that they would never pay more than two percentage points above bank rate.
Therefore some of the building society’s mortgage customers, around 730,000 customers, have paid just 2.5 per cent since March 2009.
Though any mortgages taken since then now revert to the new standard mortgage rate which has a 3.99 per cent rate.
Executive director of the Nationwide building society, Chris Rhodes has repeatedly confirmed that the rate would be honoured indefinitely.
While this loyalty to borrowers maybe admirable it does come at a cost. Benefits elsewhere in the business are reduced in order to meet the annual £800 million cost of honouring the rate.
The good news though is that the society has a whole has navigated well throughout the financial turbulence of recent years.
A customer exodus from traditional banks has meant the Nationwide has been given a boost and therefore their shares of the mortgage market have grown to a record high.
It seems that dissatisfaction with the big banks has lead to people voting with their feet.
Graham Beale, chief executive of the building society, says “Nationwide is uniquely well placed to meet the demands of the growing number of customers who are seeking a genuine and variable alternative to the established banks”.
Gross mortgage lending has jumped 17 per cent to £21.5 billion thus giving the group its highest ever market share.
Recent figures have revealed that the building society provided 15.1 per cent of all UK mortgage lending and this figure is up from the 13 per cent recorded last year.
During the year Nationwide also provided loans to more than 42,000 first-time buyers, a 75 per cent rise on last year and meaning that the society was responsible for almost one in five of all first-time buyer mortgages in the UK.
In April this year the building society posted a 3.4 per cent rise in pre-tax profits to £210 million from £203 million last year.
The mutual has however shrugged off suggestions that it has benefited from the woes of its major rival the Co-operative bank, which just this month had its credit rating downgraded six notches by Moody’s, a credit rating agency, to effectively ‘junk’ status.
Nevertheless, in conclusion it appears that the Nationwide building society’s financial position remains strong and robust. This may be due to the fact that the lender has not simply focussed on new customers but it has reserved the very best deals for their existing customers.
Lowest Ever Fixed Rates Launched by Nationwide.
In the wake of measures that have already been introduced to boost the housing market and recent measures that have been unveiled by the government in the current budget, it seems that mortgage rates are about to drop again ‘significantly’ over the next 3 months or so.
Some lenders have recently indicated that they intend to increase the number of mortgages they make available throughout 2013. Read more
Nationwide Extend 95% Mortgage Range.
Record low mortgage rates may abound, but home owners are still struggling to move up the property ladder.
It appears that in the current climate it is not just first time buyers that are facing problems, many home owners are unable to move up the property ladder due to failing equity in their property. Read more
Nationwide ends interest only mortgages.
Recent data has shown that of the 11.2 million current mortgages in Britain, about 43 per cent of these are interest-only deals.
For a generation these particular deals have been a standard way for first time buyers and those with families to get on to the housing ladder. Read more
Nationwide Looks set to Become One of the UK’s Big Lenders.
It currently appears that the Nationwide building society, which is Britain’s biggest customer owned financial service group, looks likely to surpass Barclays in terms of gross lending in 2012.
This would therefore make it the third biggest UK lender after Santander and Lloyds Banking Group. They are competing with the likes of the Royal bank of Scotland (RBS), HSBC and Barclays in the financial service sector. Read more
Nationwide’s Standard Variable Rate Raise!
Figures from the Council of Mortgage Lenders (CML) have shown that Nationwide building society offered an estimated £17.1 billion in mortgage lending last year and increased its share of the market to 12.1 per cent, from 9 per cent in 2010.
It seems that just when the Government’s Funding for Lending scheme appeared to be making a difference to lending, theUK’s largest building society goes ahead and hikes the interest rates on their tracker and fixed rate mortgage products. Read more
Banking system glitches.
Nationwide are the latest lender to upset customers with payment debacle this year.
Customers of the building society found recently that their accounts had been debited twice. Most customers only became aware of this blunder when they found their cards being rejected when they tried to make a purchase. Read more
In today’s current climate mortgage lenders are tightening up. Recent rate hikes and further lending restrictions are meaning that mortgages are being pulled further and further out of reach for first time buyers, as well as those moving or re-mortgaging.
However, it seems that at least one lender is bucking the trend. Nationwide has recently announced that it is cutting some of its mortgage rates and fees. The building society has cut the cost of some deals for the second this month, it has cut all its 2 and 5 year fixed rates by 0.10%. Read more
According to a report from Nationwide, house prices started the New Year with a slight decline falling by 0.2% in January. The annual rate of house price growth slowed to 0.6% from 1% in December.
The report warned that house prices dropped more than £51 a day in January 2012 and further falls are on the way. Read more