Money News
Nationwide Building Society will, from May 1st, launch a new loan facility to help first time buyers who deal with the Society directly. The offer includes a £300 discount on the reservation fee and a £100 discount on legal fees for choosing the Society's 3 year fixed rate (available from 5.75%) or 3 year tracker (available from 5.74%) mortgage.
Both mortgage products are available up to 95% LTV and have no higher lending charges. The move comes after the Society recently cut its tracker rates and Base Mortgage Rate by 0.25% in line with the Bank of England base rate reduction.
The Society says it is also rewarding loyalty by offering a reservation fee free 5 year fixed rate deal, available from 6.15%, to existing Nationwide borrowers switching deals, including those whose current deal is coming to an end.
It is also introducing some changes to mortgage products available to new Nationwide borrowers. These include: a maximum loan size of £500,000 for new customers; and a maximum loan to value of 90% on fixed rate and tracker mortgages for new loans (excluding borrowers taking the 3 year fixed rate or tracker products, which are available up to 95% LTV).
In addition, new mortgages on the Society's base mortgage rate will only be available to customers dealing directly with Nationwide and only up to a maximum loan to value of 75%.
Existing Nationwide borrowers won't be affected by these changes and will continue to have access to all products up to 95% loan to value.
28 April 2008 © Moneyextra.com
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