The loyalty initiative targets Nationwide customers who want to convert their home into a rental property while buying another property to live in themselves.
The building society has launched a new set of dedicated loyalty let-to-buy products through The Mortgage Works (TMW), part of the Nationwide Group.
Customers can apply simultaneously for a let-to-buy mortgage on their existing property with TMW as well as a residential mortgage for their new property through Nationwide. These customers will receive £250 cashback on completion.
It is the first time Nationwide has offered a dual-branded proposition combining both Nationwide’s residential mortgage arm and the Nationwide Group’s specialist lender TMW.
Paul Wootton, head of specialist lending, said: “Nationwide is taking a joined-up approach to helping home movers turn their existing home into a buy to let, while purchasing a new home in which to live. We are making it easier and more flexible for our customers to complete the process of securing two different types of home loan at the same time, helping those who may wish to live elsewhere but want to turn their existing property into an investment opportunity.
Customers will be able to apply for a new residential mortgage with Nationwide of up to 85% loan-to-value (LTV) when applying for a TMW let-to-buy loan.
The new process and TMW let-to-buy products are only available through intermediaries and will be available to both existing mortgage customers and those new to Nationwide.
David Hollingworth, associate director at intermediary firm London & Country, said: “A move to a new property can often be the point when an owner makes the decision to become a landlord. Linking the two sides of the let-to-buy coin makes sense and should give brokers and their customers the option of a more joined up solution with added cost incentives.”
The key TMW let-to-buy products available to customers completing the onward residential purchase through Nationwide are as follows:
Two-year fixed rate with £995 fee, available up to 65% LTV at 2.99%
Two-year fixed rate with £995 fee, available up to 75% LTV at 4.09%
Five-year fixed rate with £995 fee, available up to 65% LTV at 3.99%
Five-year fixed rate with £995 fee, available up to 75% LTV at 4.49%.
All come with a free valuation and a £250 cashback.
