Nationwide new initiatives making it easier and cheaper for home buyers

Nationwide is launching a number of intiatives tomorrow, 16 October, to make it easier and cheaper for home buyers, including first time buyers and to help those customers coming to the end of their mortgage deal.

Help for first time buyers

By reducing the amount first time buyers have to pay upfront it will be easier and cheaper to borrow money. The options available will be

• a bigger discount on the reservation fee, up to £500 from £250
• a £250 reservation fee discount plus free legal fees

As a result, on a 3 year fixed rate mortgage at 4.44% (60% LTV), the reservation fee will be reduced to £396.

Help for all home buyers

There will be a new combined reservation and legal fee option on the 2 year fixed rate mortgages from 4.28% (up to 70% LTV) and on a new 2 year tracker mortgage from 3.48% (up to 70% LTV).

Help for existing customers

As well as competitive low rates for existing customers that don’t increase with a higher loan to value (up to 95%) and tracker mortgages that are capped at 3.99%, the fees and rates will be reduced on the following

• 2 year fixed rate mortgages, no fee, up to 95% LTV, rate reduced by 0.19% to 3.99%
• 2 year fixed rate mortgages, £495 fee, up to 95% LTV, rate reduced by 0.1% to 3.79%
• 3 year fixed rate mortgages, £495 fee (reduced from £995), up to 95% LTV, rate from 4.49%

And there will be a new 3 year fixed rate, no fee, up to 95% LTV, rate from 4.64%

Andy McQueen, mortgage director at Nationwide, commented ‘The combination of rate cuts, of up to 0.84%, and fee offers we are announcing today should really help first time buyers and seasoned home owners.

We are reducing the amount that they need to pay upfront and so hope we’ve removed a barrier which may have prevented people from buying a home.’

You can get more details on the Nationwide website.