Nationwide Building Society
Two Year Fixed Rate
Type: Fixed mortgage
Fixed term: 2 years
Fixed rate: 4.18%
Minimum loan: No minimum
Maximum loan: £500,000 and 60% loan to value
Income multiples: Based on affordability
Conditions: No valuation or legal fees for remortgages
Flexible features: Overpayments maximum £500 a month, underpayments and draw downs up to limit of overpayment reserve, additional borrowing facility for further advances, interest calculated daily
Arrangement fee: £599
Redemption fee: 2% of outstanding loan until end of deal period
Tel: 08457 302010
Nationwide has produced a series of two year rates from 4.09 per cent to accommodate loan-to-values up to 85 per cent and varying levels of arrangement fees. The term does not start until completion.
Bestinvest head of mortgages Peter O’Donovan says: “With the most expensive fee being £995 I would think most borrowers can opt for the lowest rate without being penalised”.
While Nationwide’s fixed rates is not the lowest, O’Donovan thinks this rate is competitive. He says: “Nationwide has always had a competitive SVR so in general the difference between pay rate and SVR is lower than most lenders”. He thinks adviser remuneration is in line with the market.
O’Donovan finds little to dislike about the Nationwide products, however he does find the higher loan to value rates at over 6 per cent on the high side and suggests that Nationwide does not really want to lend at that level.
In terms of the main competitors, he names Clydesdale’s 3.69 per cent fix, RBS at 3.99 per cent, Abbey at 4.19 per cent and C&G at 4.09 per cent.
In summary, O’Donovan says: “Nationwide has been off the market for a while so it is good to see a good rate with a low fee that provides some competition to the main four lenders”. If Nationwide could lower the higher LTV rates and perhaps increase it to 90 per cent, he says: “it might bring some confidence back into market.”
Suitability to market: Good
Competitiveness of premiums: Good
Adviser remuneration: Good