Nationwide cuts mortgage rates

Nationwide is cutting mortgage rates by up to 1% for new and existing homebuyers who have a small deposit.   The Society will also reduce its product fee by £500 for those who are moving home - effectively a 50% reduction. This coincides with the launch of Save to Buy - a new scheme for first-time buyers which offers incentives to save and mortgages with small deposits - announced earlier this week.

Rate reductions

From Friday 6 May 2011, Nationwide will be reducing its mortgage rates on its three and five-year fixed rate deals for new and existing customers moving home and new customers buying their first house with a small deposit.

Rates at 90% LTV will be reduced by a full 1% and rates at 95% LTV will be cut by 0.50%.  The new rates start from 5.79% with a 10% deposit and 6.29% with a 5% deposit on the three-year fixed rate deals.

£500 product fee discounts

In addition, the Society is helping to remove another barrier for buyers by offering first-time buyers, home movers and existing customers moving home a £500 product fee discount across all products that normally carry a £999 fee. 

To support Nationwide's bid to help get Britain moving it will also be offering its mortgage borrowers a 15% discount off of Pickfords key services and 10% off of Big Yellow Self Storage Company.

Martyn Dyson, Nationwide's head of mortgages, said:  "These changes have been designed for people who want to move or buy their first house but find they're struggling with raising a large enough deposit or affording the upfront fees.  We're tackling these issues head on by not only making our mortgages available to first-time buyers with just a 5% deposit through Save to Buy but by reducing our rates at higher LTVs.  We hope this will give prospective buyers the boost they need to make their move."