Type: Flexible fixed-rate mortgage
Fixed term: 10 years
Fixed rate: Loans up to 95% of valuation 5.59%, up to 90% of valuation – 5.09%
Minimum loan: 1
Maximum loan: Up to 95% of valuation subject to a maximum of 200,000, up to 90% of valuation subject to a maximum of 300,000, up to 85% of valuation subject to a maximum of 400,000, up to 80% of valuation subject to a maximum of 700,000, up to 75% of valuation subject to a maximum of 1m, up to 60% of valuation subject to no maximum
Income multiples: Based on affordability and credit score
Conditions: Free valuation and legal fees for remortgages, free mortgage payment protection insurance for three months
Flexible features: Overpayments of up to 500 a month, underpayments, payment holidays, lump sum withdrawals, interest calculated daily
Arrangement fee: 389 plus 95 administration fee for remortgages
Redemption fee: 5% of mortgage balance in year one, 4.5% in year two, 4% in year three, 3.5% in year four, 3% in year five, 2.5% in year six, 2% in year seven, 1.5% in year eight, 1% in year nine, 0.5% in year 10
Introducers fee: Subject to negotiation
Tel: 0800 302010
Nationwides 10-year fixed rate mortgage is available at 5.59 per cent for loans up to 95 per cent of valuation and 5.09 per cent for loans up to 90 per cent of valuation. It offers a range of flexible features including overpayments and payment holidays.
London & Country mortgage specialist James Cotton feels 10-year fixed rates may not be as popular as shorter-term deals. However, he adds: “For those borrowers who are looking for long-term security, this deal offers very good value.”
Cotton points out the rate of 5.09 per cent for loans up to 90 per cent of valuation is the lowest 10-year available at the moment, having come down from 5.19 per cent recently. But if borrowing more than 90 per cent of the property value, the rate jumps up to 5.59 per cent, but there is no higher lending charge which works in its favour.
He also rates the product highly in terms of flexibility. “As with all Nationwide deals, borrowers taking this fix have the ability to overpay by up to 500 each month this flexibility is important when committing to a long-term deal,” says Cotton.
Cotton praises Nationwide for offering good incentives for remortgages in the shape of a free valuation and free legal work on all deals. He says: “At the beginning of April, it added a 95 remortgage fee on top of the standard arrangement fee of 389 which devalues the incentives somewhat. However, the set-up costs are still competitive.”
Casting an eye over the possible competitors for the deal Cotton cites Derbyshire and Norwich & Peterborough building societies. “These offer the closest 10-year fixed rates at 5.10 per cent and 5.14 per cent respectively, however neither offers help with set up costs,” he says. He concludes by adding that Northern Rock also offers long-term fixes with seven, 10 and 15-year deals all at a rate of 5.19 per cent.
Suitability to market: Good
Competitiveness of mortgage rate: Good
Adviser remuneration: Average