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Nationwide launches “simplified” mortgage range

Nationwide has simplified its mortgage range, cutting rates and increasing LTVs.

It’s specialist lending arm, The Mortgage Works, has also today launched a new range broker exclusive prime mortgages.

Nationwide’s core product range, which it says is designed to be clear and easy to understand and will take effect from tomorrow., will include two, three and five-year fixed rates and two and three-year tracker mortgages.

The two-year products come with a choice of £896 or £0 product fees, whereas all other products have a standard fee of £896. The £500 product fee discount remains for first-time buyers on three and five year fixed rates and three-year tracker products.

The simplified range includes rate reductions of up to 0.29 per cent. Borrowers with loans of up to 95 per cent loan-to-value will now be allowed to borrow up to £250,000 and those wishing to borrow up to 80 per cent are now able to borrow up to £1,000,000.

The Mortgage Works new prime range includes free valuation on purchases, capped trackers, early repayment free trackers, a range of cash back options and a lifetime variable rate product.

Two-year capped trackers start at 2.89 per cent with rates capped one per cent higher. Two, three and five-year purchase rates start from 3.64 per cent, up to 85 per cent and 0.5 per cent fees.

Two-year fixed remortgage fixed rates start from 3.64 per cent and there are a number of three and five-year fixed rates available with no arrangement fee and £500 cash back.

Other products include a two-year ERC free tracker from 2.99 per cent, two, three, four, five and seven year fixed-rate deals starting at 2.59 per cent. There is also a lifetime variable rate at 4.79 per cent and two and three-year stepped trackers.

Nationwide and The Mortgage Works director of mortgages Andy McQueen says: “We have developed this range of innovative mortgages, which are complimentary to those on offer from Nationwide, to continue to help intermediary customers.

“In addition to the range of specialist range of mortgages already on offer fro TMW, brokers now have access to an even greater range of exciting and compelling prime mortgages which will meet the needs of their customers.

“These new products further signal our commitment to offering greater choice and innovation to the intermediary channel which remains a vital and integral part of our mortgage proposition.”

Earlier this month Nationwide revealed that it had taken a £450m hit on its profits this year by sticking to the pledge to existing borrowers not to raise its standard variable rate by more than 2 per cent above base rate, and announced last month that it could not rule out closing some of its branches and reviewing its distribution arrangements in order to reach its cost targets.

TMW last month increased its buy-to-let range’s LTV to 80 per cent.

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