Nationwide launches NewBuy products

Nationwide Building Society is showing its support for the NewBuy scheme by introducing a NewBuy mortgage range.

The Society is offering borrowers who buy a new-build house or flat in England with a builder that is registered under the NewBuy scheme the option of a three or five-year fixed rate mortgage at 95% LTV.

New rates include:

Three-year fixed rate available at 5.69% (95% LTV)

£900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
£500 product fee discount for first-time buyers
Product fee-free option available at 5.99%, £99 booking fee will still apply

Five-year fixed rate available at 5.99% (95% LTV)

£900 product fee, £99 booking fee (payable upfront and non-refundable) for house purchase and existing customers moving home
£500 product fee discount for first-time buyers
Product fee-free option available at 6.19%, £99 booking fee will still apply

These rates match those currently available for customers purchasing a second hand property at 90% LTV.

The first phase will see products available to intermediaries only.  The Society will make the products available through branches at a later date.

Andrew Baddeley-Chappell, Head of Mortgage Strategy and Policy at Nationwide, said: "Nationwide is committed to supporting the NewBuy scheme and is one of just a handful of lenders making products available from launch.

"The widening gap in housing provision is undisputed. Nationwide is supportive of this initiative that enables a return to lower deposit mortgages within the new-build sector. 

"NewBuy will boost the supply of properties, increase employment, and provide affordable mortgages to those with more modest deposits, including first time buyers.

"This is just another example of how Nationwide is on the borrower's side and is committed to helping them access affordable and competitive mortgage deals."