Nationwide Building Society has announced upcoming changes to its fixed-rate mortgage offerings, with the new rates set to take effect on September 24. The lender will be cutting its fixed-rate mortgage rates by as much as 0.31 percentage points. This adjustment is expected to impact the majority of its fixed-rate mortgage products, providing borrowers with potentially lower monthly payments and making mortgages more affordable for a wide range of homebuyers.
The rate reductions come as part of Nationwide’s ongoing efforts to support both new and existing customers in the property market. Lower rates could be particularly appealing to those looking to remortgage or secure a new deal amid a fluctuating housing market. The decision to cut rates may reflect wider market conditions, as many lenders respond to changes in interest rates and competitive pressure within the mortgage sector.
In addition to the rate cuts, Nationwide is also expanding its scheme aimed at helping first-time buyers. Under this scheme, first-time buyers will be able to borrow up to six times their annual income, offering them a greater chance to secure their first home. This move is particularly significant for those struggling to enter the property market due to rising house prices and tighter lending criteria. By increasing the borrowing limit, Nationwide is making it easier for individuals to access the funds they need to buy a property.
This expansion of the borrowing scheme highlights Nationwide’s commitment to supporting first-time buyers, who often face the most significant challenges in getting on the property ladder. The ability to borrow more could make a substantial difference for those who may have previously been unable to qualify for a mortgage or afford a suitable home in their desired area. The scheme is expected to help many buyers bridge the gap between their savings and the cost of a home.
Nationwide’s dual approach of reducing mortgage rates and offering more flexible borrowing options for first-time buyers is aimed at making the property market more accessible and manageable for a broader range of customers. These changes reflect the building society’s strategy to adapt to market conditions and meet the evolving needs of homebuyers in the UK.
Nationwide is extending its Helping Hand scheme, a move that could benefit prospective homeowners. This change makes Nationwide the first major lender to allow first-time buyers to borrow up to six times their income on mortgages with up to 95% loan-to-value (LTV).
The extension is aimed at helping those struggling to secure a mortgage, especially in the current housing market. By offering higher borrowing limits, Nationwide hopes to make homeownership more accessible to a larger number of buyers.
This update is part of a broader strategy by Nationwide to support different groups in the property market. These include first-time buyers, people moving homes, existing customers relocating, and those seeking to remortgage.
Additionally, first-time buyers will benefit from significant reductions across Nationwide’s fixed-rate mortgage products, offering potential savings on monthly payments. This move aligns with the building society’s ongoing efforts to make homeownership more affordable.
Nationwide has announced several rate cuts across its fixed-rate mortgage products, providing more competitive options for homebuyers and those remortgaging.
One of the key changes is a 0.05% reduction on a five-year fixed rate at 95% LTV, bringing it to 4.99% with a £999 fee. For those interested in a 10-year fixed rate at 75% LTV, the rate has been reduced by 0.31%, now available at 4.69% with no fee. A five-year fixed rate at 90% LTV has seen a 0.10% cut, lowering it to 4.49%, also with a £999 fee.
Other reductions include a five-year fixed rate at 85% LTV, now at 4.19% following a 0.15% cut, and a three-year fixed rate at 90% LTV, reduced by 0.05%, now available at 4.99%, both with a £999 fee. New home movers can benefit from reductions of up to 0.29% on two, three, five, and 10-year fixed-rate products, up to 95% LTV.
For example, a five-year fixed rate at 60% LTV with a £1,499 fee is now 3.74%, while a two-year fixed rate at 90% LTV with a £999 fee has dropped to 5.04%. Existing customers moving home can also access these reductions, including a five-year fixed rate at 60% LTV, now 3.74% with a £1,499 fee, and a 10-year fixed rate at 60% LTV, reduced to 4.54% with a £999 fee.
These changes apply to a range of LTV options, making Nationwide’s mortgage products more appealing across the board.
Nationwide is continuing its focus on supporting existing customers by offering rates that are the same or even better than those for new customers.
As part of its commitment to helping first-time buyers, Nationwide is expanding its Helping Hand scheme. Starting tomorrow, first-time buyers will be able to borrow up to six times their income on mortgages with up to 95% LTV, when choosing a five or 10-year fixed-rate product. This is an increase from the usual lending limit of 4.5 times income, representing a 33% boost.
This change can significantly increase the borrowing power of buyers. For example, a couple with a joint income of £50,000 could now borrow up to £300,000, compared to the previous limit of £225,000, providing more flexibility in a competitive housing market.
Nationwide is also raising its maximum loan amounts for high LTV mortgages. Loans above 90% LTV can now go up to £750,000, compared to the previous £500,000 limit, making it easier for buyers in higher-priced regions to secure the funding they need.
Debbie Crosbie, Nationwide’s Chief Executive, highlighted that the Helping Hand scheme has already supported around 40,000 people in buying their first home since its launch three years ago. She noted that the recent enhancements, alongside rate cuts, aim to strengthen the lender’s position in the market and reaffirm its commitment to first-time buyers.
Nationwide Building Society has announced cuts to its fixed-rate mortgage range, effective from September 24. These reductions, reaching up to 0.31%, will affect most of the lender’s fixed-rate products, providing a potential relief for those looking to secure a mortgage.
In addition to these rate cuts, Nationwide is expanding its Helping Hand scheme. This move allows first-time buyers to borrow up to six times their income on mortgages with up to 95% loan-to-value (LTV) when selecting a five or 10-year fixed-rate product. This expansion represents a 33% increase from the typical 4.5 times income lending limit, offering greater borrowing capacity for many buyers.
For example, a couple with a joint income of £50,000 could now borrow up to £300,000, £75,000 more than the previous limit. Nationwide is also increasing the maximum loan sizes for loans above 90% LTV to £750,000, up from the previous £500,000, further supporting first-time buyers, particularly in areas where property prices are higher.
Debbie Crosbie, Nationwide’s Chief Executive, noted that the Helping Hand scheme has already assisted around 40,000 people onto the property ladder since its launch three years ago. She emphasised that these changes, along with the rate cuts, aim to solidify Nationwide’s position as a market leader in supporting first-time buyers.
The scheme has been particularly successful in regions like the Outer South East, where first-time buyers benefit from greater borrowing limits, and where 28% of Helping Hand mortgages have been issued. The expansion of this initiative is aimed at making homeownership more accessible across various regions of the UK.
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