Menu

First-time Buyers

Rates chopped by Nationwide for borrowers with low deposits

Christina Hoghton
Written By:
Posted:
06/01/2016
Updated:
05/01/2016

The building society has reduced rates on its 95% loan-to-value mortgage range, aimed at those borrowers without large deposits

Nationwide has announced it is cutting selected rates by up to 0.40 percentage points across its range of 5% deposit fixed rate mortgages.

Rates for the two-year 95% loan-to-value (LTV) deal are being cut by 0.35% to 3.89%, with a £999 fee and 4.29% with no fee.

Three-year fixes have also been significantly chopped by 0.40% to 4.39% with a £999 fee, and 4.69% with no fee. And five-year fixed rates have been reduced by 0.30% to 4.69% with a £999 fee and 4.89% with no fee respectively.

Henry Jordan, Nationwide’s head of mortgages, said: “As part of Nationwide’s range of measures to help first-time buyers on to the housing ladder, we are reducing rates for those with smaller deposits looking for competitive mortgage deals and payment security over a range of terms.

“First-time buyers will also continue to qualify for a £500 cashback, irrespective of which product they choose. This is in addition to fee-free valuations now available on all mortgage products, which will save the average Nationwide mortgage customer around £200.”

Sponsored

Customers can choose any mortgage product and benefit from fee-free valuations, giving them with the option to obtain a mortgage offer with no upfront fees. Those customers who decide to opt for a more detailed Nationwide Homebuyers Report will now pay a reduced top-up fee, depending on the overall value of the property, on a sliding scale, starting from £150.