Following on from our blog post yesterday about Coventry Building Society lowering 90% and 95% mortgage products for first time buyers, Nationwide building society have also announced that they will be reducing rates on their own 90% and 95% mortgage products. These new rate reductions at high loan to values (LTV) are a great sign that confidence is returning to the mortgage market after a tumultuous few months and years. Reducing higher loan to value loans means that borrowers such as first time buyers with low deposits of 5% and 10% will have greater access to competitive rates. Here is a breakdown of the changes that are coming in from Nationwide.
5% and 10% Deposit Mortgages From Nationwide
As of Friday the 14th of April 2023, Nationwide have cut several of their fixed products at 90% and 95% LTV by up to 0.20%. For new customers moving home, some of these reductions are:
- 5-year fixed deal at 90% LTV, with a £999 fee at 4.44%
- 3-year fixed deal at 90% LTV, with a £999 fee at 4.69%
- 2-year fixed deal at 95% LTV, with a £999 fee at 5.29%
For first time buyers, Nationwide also offer these newly reduced products which come with £500 cashback:
- 5-year fixed deal at 90% LTV, with a £999 fee at 4.44%
- 2-year fixed deal at 90% LTV, with a £999 fee at 4.89%
- 3-year fixed deal at 95% LTV, with a £999 fee at 5.24%
For people looking to switch mortgage deals:
- 5-year fixed deal at 60% LTV, with a £999 fee at 3.89%
- 2-year fixed deal at 75% LTV, with a £999 fee at 4.24%
- 10-year fixed deal at 60% LTV, with no fee at 4.29%
What Nationwide Have Said About The Reductions
Commenting on these dramatic rate reductions for higher LTV loans, Nationwide have said:
“We are making reductions on our higher loan to value products to support those with a small deposit who are looking to buy their first home or move to a new property. We have also made further reductions to our switcher products where existing members benefit from our pricing pledge that those switching to a new deal will continue to benefit from a rate which is the same or better than the equivalent remortgage product.”
Speak To A Mortgage Advisor
If you are looking at getting a new mortgage but have a limited deposit, these types of high loan to value mortgages might suit you. The best thing to do is speak with one of our mortgage professionals here at Oportfolio mortgages before you make any decisions. We are here to help, so feel free to give our team a call today to start your mortgage journey.
