Nationwide Cuts Rates and Increases LTV

by Peter Jacobs

The nation’s largest building society the Nationwide has today cut some of its fixed rate and tracker rate mortgages as well as increasing the LTV percentage.As the Bank of England again chose to leave the base rate of interest at a historic how of 0.5% the Nationwide Building Society announced that it has reduced some rates for tracker and fixed rate mortgages by up to 0.6% with the average being 0.3%.

Additionally the maximum loan to value percentage (LTV) has also increased from 70% to 85% on some of its core mortgage lending products for people not already with the society looking to remortgage (people already with the Nationwide and remortgaging can get up to 95% LTV in any case). This will be welcome news to many people in the UK who are either first time buyers or looking for better mortgage deals when remortging their current rates.

Example of new Nationwide Products

Here are some of the current deals that now exist with the reduction in the interest rate :

  • 2 year fixed rate mortgage with a maximum LTV of 70% interest rate reduced from 3.49% to 3.38% a reduction of 0.11%
  • 3 year tracker rate mortgage with the same LTV rate reduced from 4.99% to 4.48% a reduction of 0.51%
  • 3 year fixed rate mortgage at 70% LTV is reduced from 4.39% to 3.98% a reduction of 0.41%
  • Maximum LTV on remortgage tracker deals increased to 85%

A Nationwide Building Society spokesperson Andy McQueen said “These reductions enables us to continue to support those customers remortgaging with less equity. Some of our largest reductions are on our remortgaging deals in particular the 2 year fixed rate products”

Existing borrowers who are moving home can have a loan to value of up to 95%

How to Get More Information

All of these new deals are on the Nationwide’s website and you can not only get these deals online but also over the telephone. All products will be available from 11th May. All of these products have a fixed £99 booking fee (the price you pay when you start the process of applying for these products) and a £896 product fee which is payable once your home completion has gone through via your solicitor. In some case the product fee can be added to the value of your mortgage but check with the Nationwide on all fees and costs.

If you are thinking of remortgaging whether you are an existing customer of Nationwide Building Society or looking for a better deal from your current provider then these would be worth looking into. Whatever your circumstances though you should always seek professional advice from an independent financial adviser or other regulated company or person to ensure any financial product is right for your circumstances.

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