Nationwide Building Society has announced significant cuts to its fixed-rate mortgage range, effective from tomorrow, September 24.
The reductions, of up to 0.31 percentage points, will apply to the majority of the lender’s fixed-rate products.
In a move that could provide relief to prospective homeowners, Nationwide is also extending its Helping Hand scheme.
This initiative will make the building society the first major lender to offer first-time buyers the ability to borrow up to six times their income on mortgages with up to 95 per cent loan-to-value (LTV).
The changes come as part of Nationwide’s efforts to support various segments of the housing market, including first-time buyers, new customers moving home, existing customers relocating, and those looking to remortgage.
For first-time buyers, Nationwide is offering significant reductions across their fixed-rate products.
For first-time buyers, Nationwide is offering significant reductions
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These include:
- A 0.05 per cent cut on a five-year fixed rate at 95 per cent LTV, now at 4.99 per cent with a £999 fee
- A 10-year fixed rate at 75 per cent LTV will see a substantial 0.31 per cent reduction, bringing it to 4.69 per cent with no fee
- A five-year fixed rate at 90 per cent LTV, reduced by 0.10 per cent to 4.49 per cent, with a £999 fee
- A five-year fixed rate at 85 per cent LTV, now at 4.19 per cent after a 0.15 per cent cut. Both of these come with a £999 fee
- A three-year fixed rate at 90 per cent LTV is available at 4.99 per cent, reduced by 0.05 per cent, also with a £999 fee
New customers moving home: reductions of up to 0.29 per cent across two, three, five and 10-year fixed rate products up to 95 per cent LTV, including:
- Five-year fixed rate at 60 per cent LTV with a £1,499 fee is 3.74 per cent (reduced by 0.04 per cent)
- Two-year fixed rate at 90 per cent LTV with a £999 fee is 5.04 per cent (reduced by 0.10 per cent)
- Three-year fixed rate at 60 per cent LTV with a £999 fee is 3.99 per cent(reduced by 0.29 per cent)
- Five-year fixed rate at 95 per cent LTV with a £0 fee is 5.09 per cent (reduced by 0.05 per cent)
- Ten-year fixed rate at 60 per cent LTV with a £999 fee is 4.59 per cent (reduced by 0.10 per cent)
Existing customers moving home: reductions of up to 0.29 per cent across two, three, five and ten-year fixed rate products up to 95 per cent LTV, including:
- Five-year fixed rate at 60 per cent LTV with a £1,499 fee is 3.74 per cent (reduced by 0.04 per cent)
- Two-year fixed rate at 90 per centLTV with a £999 fee is 5.04 per cent (reduced by 0.10 per cent)
- Three-year fixed rate at 60 per cent LTV with a £999 fee is 3.99 per cent (reduced by 0.29 per cent)
- Five-year fixed rate at 95 per cent LTV with a £0 fee is 5.04 per cent (reduced by 0.05 per cent)
- 10-year fixed rate at 60 per centLTV with a £999 fee is 4.54 per cent (reduced by 0.15 per cent)
Nationwide continues to prioritise its existing customers, offering them rates that are the same or lower than those available to new customers.
Nationwide’s Helping Hand scheme is set to expand significantly. From tomorrow, first-time buyers will be able to borrow up to six times their income on mortgages with up to 95 per cent LTV when taking out a five or 10-year fixed rate product.
This represents a 33 per cent increase from the standard 4.5 times income lending limit.
The enhanced scheme could substantially boost buying power. For instance, a couple with a joint income of £50,000 could now borrow up to £300,000, an increase of £75,000 compared to the previous limit.
Nationwide is also increasing its maximum loan sizes. Loans above 90 per cent LTV will now be available up to £750,000, up from the previous £500,000 limit.
These changes aim to make homeownership more attainable for first-time buyers, particularly in regions with higher property prices.
Debbie Crosbie, Nationwide’s Chief Executive, commented on the enhanced Helping Hand scheme and said: “Helping Hand has supported around 40,000 people onto the property ladder since we launched it three years ago.
“We want to do more and are boosting the scheme to six times income and increasing the maximum loan size. This, alongside our most recent rate cuts, further strengthens our market-leading position and demonstrates that, as one of the UK’s largest lenders, Nationwide continues to put first-time buyers first.”
The scheme has proven particularly popular in the Outer South East, where the average first-time buyer house price is £262,504. This region accounts for 28 per cent of all Helping Hand mortgages and 15 per cent of Nationwide’s first-time buyer mortgages.
Nationwide’s House Price Index reveals significant regional variations in first-time buyer property prices, with the UK average standing at £226,794.
The extended Helping Hand scheme aims to address these disparities and make homeownership more accessible across the country.