Nationwide cutting mortgage rates by up to 1 per cent
Soon, Nationwide will offer a new program named Save to Buy. This new scheme is proposed for first-time buyers and offers encouragement to save mortgage with small deposits. At the same time of this lauch, the mortgage buyers will also get a reduction of high LTV mortgage rates at least by 1%. With this reduction, the new and existing homebuyers will automatically reduce thier product fee by £ 500. Based on the schedule, Nationwide will apply this reduction for its 3 or 5-year fixed rate since Friday, May 6, 2011. Thus, how is this reduction applied?
As planned, the one-percent reduction will be valid for rates at 90% LTV. Meanwhile, rates at 95% LTV will be reduced by 0.5%. Thus, the new rates begin from 5.79% with a 10% deposit and 6.29% with a 5% deposit on the 3-year fixed rate deals. Indeed, Nationwide also offers a product fee for first-time buyers, home movers, and existing customers moving home by £500 discounts. This new product fee is intended to carry off the customers’ burden since the normal fee is about £999. The other product offered is a 15% discount off of Pickfords key services and 10% of Big Yellow Self Storage Company.
According to Martyn Dyson, Nationwide’s head of mortgage, these changes are intended for customers who want to move or buy their first home but have difficulties dealing with a high enough deposit and initial expenses. “We’re seizing these issues by reducing not only our mortgages for first-time buyers with just a 5% deposit through Save to Buy but our rates at higher LTVs as well”. He added.
On the other side, Nick Leeming, business development director of Zoopla said that the lowest end of the property market was hard to find due to the lack of affordable mortgage. Thus, the market would remain deflated all the way up the property chain. He further added that the demand to buy mortgages was high but the lenders need to gravely think about the lack of higher LTV products available to them.
Related Posts
Other Posts: