by Mark Johnston
The largest building society in the world, Nationwide, has launched a re-mortgage product with no product, valuation or legal fees. The only thing a customer has to pay is a standard booking fee of £99.
The building society is offering three products under this range. Borrowers can choose from either a two, three or five year fixed rate mortgage. The £99 fee compared well against rivals like Cheltenham & Gloucester and the Spanish bank Santander who charge up to £995 in fees.
The product range includes a three year fixed rate mortgage with a seventy percent loan to value(LTV) for 4.09%. The great news is that new customers are allowed to borrow even more with a loan to value of up to 85% of the property value.
Nationwide’s five year 4.69% fixed rate mortgage offer the same deal as far as the amount customers could borrow. Existing customers can borrow up to 70% of the value of their property whilst new customers can borrow 85%.
Those that are looking to re-mortgage can choose from either a two, three or five year tracker at 3.09% all of which require a 30% deposit.
Nationwide’s divisional director for mortgages, Andy McQueen said: “For many customers our ‘fee-friendly’approach will mean the difference between being able to get the deal they want or being forced to stay put just because they can’t afford the upfront costs of looking around. With rates reducing by up to 0.30% across our range of fixed rate products, now really could be the time to re-mortgage and fix for peace of mind against rising rates in the future.”
The building society is also offering a new mortgage protector product which includes free mortgage payment protection for two years. The fixed rate 5.98% has a 85 to 98% loan to value and reverts back to their standard variable rate (SVR) after the two year period. Nationwide’s variable rate is currently 3.99% but can change in line with interest rates. The deal is only available to Flex Account customers but comes with £300 cash back for existing mortgage customers who are either moving home or switching at the end of their current deal.
Nationwide also offer a flexible mortgage which give borrower the ability to make flexible payments such as over payments and under payments. There are no early repayment charges and Nationwide have reduced the upfront costs. There are no products fees and only a £99 booking fee which is required up front. The great news is that the loan to value is 85% and can be up to 95% for existing customers.
The £300 cash back applies to existing mortgage customers who take out another mortgage with Nationwide by either moving home or switching to a new deal when their current deal runs out.
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