"By not being part of the scheme, we can provide improved value to our members"
All products in the new range are under 4% and will launch on Thursday 20th May. The range will be available to first-time buyers as well as new customers who are moving.
Two-year fixed rates start from 3.49% with a £1,499 fee, 3.69% with a £999 fee and 3.84% fee-free.
Five-year fixes start from 3.79% with a £1,499 fee, 3.89% with a £999 fee and 3.99% with no fee.
A two-year tracker rate also starts from 3.59% with a £1,499 fee, 3.79% with a £999 fee or 3.94% fee-free.
As with all of Nationwide’s mortgages, first-time buyers will get £500 cashback when they complete.
The new products, which will not be part of the Government’s Mortgage Guarantee Scheme, will be available via mortgage brokers as well as direct.
The latest announcement follows on from the launch last month of ‘Helping Hand’, which enables first-time buyers to borrow up to 5.5 times their income when taking a five or ten-year fixed rate up to 90% LTV.
The Society’s 95% LTV range will also mirror the criteria currently applied at 90%, therefore it will only be available to employed borrowers. The property must also be a house. New build houses are excluded, although Nationwide continues to support the Government’s Help to Buy equity loan scheme.
The Society is also adding three new products at 95% LTV for existing members moving home, all of which come with a £1,499 fee and match the equivalent new customer rates.
Henry Jordan, director of mortgages at Nationwide, said: “Deposits and affordability are two of the major issues currently facing first-time buyers, making it harder than ever for them to get their first home. We believe that with the launch of our new market-leading 95% range, along with the recent introduction of Helping Hand, we are playing a leading role in helping to tackle both these issues and giving people even more choice as they look to move into a home of their own.
“As the UK’s biggest building society and second largest lender, supporting people into their first home is at the heart of what we do. As one of the leading lenders to first-time buyers, we feel confident returning to the 95% LTV market without the need for the Mortgage Guarantee Scheme. By not being part of the scheme, we can provide improved value to our members and this is demonstrated by the market-leading rates we’re announcing today.”
