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Nationwide raises high LTV rates by up to 35 basis points

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  • 07/10/2020
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Nationwide raises high LTV rates by up to 35 basis points
Nationwide Building Society has increased interest rates on dozens of high loan to value (LTV) mortgages.

 

Rates have been increased by up to 0.35 per cent for new business deals and by up to 0.55 per cent on product transfers for existing customers.

In total 60 products are affected in the 85, 90 and 95 per cent LTV brackets.

Nationwide is one of the few lenders that is offering 90 per cent LTV mortgages to first-time buyers on a continuous basis, as some lenders dip in and out of the market.

For first-time buyers and house purchases two, five and ten-year fixed and two-year tracker rates at 85 per cent and 90 per cent LTV rates have been increased by up to 0.30 per cent.

Products for existing borrower house purchases have also been increased in line with first-time buyers and house purchases.

For example, the mutual’s two-year fix at 85 per cent LTV with £999 fee has been increased by 0.25 per cent to 2.99 per cent.

The five-year fee free fix at 90 per cent LTV increased also by 0.25 per cent to 3.74 per cent, while the two-year tracker fee-free tracker at 90 per cent LTV saw the same rise to 3.84 per cent.

For remortgages the two, five and ten-year fixes and two-year tracker rates at 85 per cent LTV increased by up to 0.35 per cent.

This includes the two-year fix with £999 fee which rose by 0.35 per cent to 2.99 per cent and the fee free 10-year fix which stands at 3.54 per cent after a 0.15 per cent increase.

Switcher rates on selected two, three and five-year fixes and two-year trackers up to 95 per cent LTV have been increased by up to 0.55 per cent.

 

‘Meet demand and maintain service’

A Nationwide spokeswoman said: “Nationwide has continued to offer competitive mortgage rates throughout the pandemic.

“However, with the market constantly changing and rates edging up, particularly at higher LTVs, more and more home movers and first-time buyers have been turning to Nationwide for their mortgage.

“Any changes we make to our mortgage rates are designed to reflect the current market prices, enable the society to continue to meet demand and maintain the high service levels that borrowers expect.

“And, as the largest lender still offering a range of mortgage options at 90 per cent LTV, these changes mean the society can still continue offering these products and supporting those with low deposits in the months ahead.”

 

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