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Nationwide launches lowest 95 per cent LTV fixed rate on market

  • 17/05/2021
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Nationwide launches lowest 95 per cent LTV fixed rate on market
Nationwide Building Society is set to launch the lowest 95 per cent loan to value (LTV) fixed rate on the market through its intermediary and direct channels.


First-time buyers and home movers are eligible for the five per cent deposit deals but self-employed borrowers will be locked out. Flats and new build properties are excluded.

From Thursday 20 May, two and five-year fixed rates and a two-year tracker are available from 3.49 per cent and will be offered outside the government’s guarantee scheme. By not using the scheme, Henry Jordan, director of mortgages, said Nationwide could offer “improved value”.

Its two-year fixes come with three fee options, 3.49 per cent with a £1,499 fee, 3.69 per cent with a £999 fee and 3.84 per cent no fee.

According to Moneyfacts the 3.49 per cent deal will be the lowest fix on the market. Platform offers the next cheapest deal which is a two-year fixed rate of 3.61 per cent with the same fee.

The same fee options apply to the five-year fixes and tracker deals. The lowest five-year fixed rate on offer from the society is 3.79 per cent. The tracker mortgage prices start at 3.59 per cent.

First-time buyers will get £500 cashback on completion.

Three new deals will be added to the 95 per cent LTV range for existing borrowers.

Nationwide withdrew from 95 per cent lending in mid June 2020 after offering the deals direct to borrowers, excluding the intermediary channel, from March. When it announced it would retreat from 95 per cent LTV, Nationwide said it was due to uncertainty in the housing market. The society said it wanted to make sure borrowers could afford their repayments and avoid the risk of negative equity.

On the society’s re-launch Jordan said: “As the UK’s biggest building society and second largest lender, supporting people into their first home is at the heart of what we do. As one of the leading lenders to first-time buyers, we feel confident returning to the 95 per cent LTV market without the need for the mortgage guarantee scheme.

“By not being part of the scheme, we can provide improved value to our members and this is demonstrated by the market-leading rates we’re announcing today.”

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