Nationwide rate cuts tomorrow + no fees

Locoblade

I dont think they're showing any rate cuts on their website yet are they? Certainly having just had a look it's still showing 6.18% fix for 5 years which is the one Im possibly interested in if it drops, so don't despair yet, see what it says tomorrow.

luckyfool

Locoblade wrote: »

I dont think they're showing any rate cuts on their website yet are they? Certainly having just had a look it's still showing 6.18% fix for 5 years which is the one Im possibly interested in if it drops, so don't despair yet, see what it says tomorrow.

If it is following the same pattern as the broker rates (which it should be) then the cuts also only apply to the 2 and 5 yr fixed rates, and only for Remortgages and Further Advances.

I do expect their purchase equivalent products to be cut next week though, as does my Nationwide BDM who I was discussing it with earlier.

macman

They haven't changed the main site yet, but if you go to the media centre (bottom left of the home page) it's in the press release dated today. The changes apply from midnight tonight.

luckyfool

macman wrote: »

Just had a look at the Nationwide site for this. Unfortunately it is only the fixed rate products that they have cut. The trackers stay the same. But they currently have a 3 year tracker (which is what I'm looking for) at 5.74%, £599 fee, which is a lot better than what my existing mortgage provider is offering (Britannia, 6.34% and £499 fee). Has anyone seen anything better than this?

Depends what you are wanting and what your deposit is.

If you have 40% to put down then Woolwich will do a better deal on their Term tracker. 5.69% for whole term (not just 3 years), though the fee is about £400 higher.

Equally, if your mortgage is large, Nationwide also do a (deleted - broker only) 2 yr tracker at 5.68% (but with a higher fee than the 2 yr one you are looking at) requiring a 25% deposit. With the fee being £1,499 it only makes more sense on a larger mortgage and/or if you preferred not to tie in for the extra year (i.e. some people think the credit crunch will have eased in 2 years and they can switch to a better deal then).

luckyfool

macman wrote: »

They haven't changed the main site yet, but if you go to the media centre (bottom left of the home page) it's in the press release dated today. The changes apply from midnight tonight.

Thanks for that.

It looks like the "fee free" offer is only applicable to existing Nationwide Borrowers switching products. i.e. People remortgaging from other lenders, or existing customers moving home will still have to pay the £599 arrangement fee.

Existing Nationwide borrowers will also benefit as the Society is, for a limited period only, waiving the £599 reservation fee for existing borrowers switching to the fixed and tracker products which currently have this fee.

macman

luckyfool, when you say 'purchase equivalent products', are you referring to new remortgage customers? And do you believe this will apply to the tracker products also?
I'm only looking for a LTV of less than 20%, and interest only payments only for 3 years, after that I'm hoping my maturing endowment policies will enable me to clear the mortgage. Doesn't seem a lot of sense in paying a hefty arrangement fee (£1,000 or so) for a 3 year deal. But the ones offering £500 or so fees now seem few and far between. Equally, I'm not keen on a 2 year deal as then I will need to pay another arrangement fee when I only have a year to run.
Thanks for the Woolwich advice, I will have a look at that one now.

Locoblade

Interesting about the fee free change for existing borrowers like me, with the reduction in rate as well it would bring them back into consideration for me.

Macman, might not be suitable for you but have you looked at the First Direct 3 year fix at 5.95% with £600 fees and offset facility too?

Slightly OT I know but is there any "inside" information on whether First Direct's rates (specifically 5/10 year fixes) might change again in the immediate future as they're the alternative I'm currently considering when we change in October?

luckyfool

macman wrote: »

luckyfool, when you say 'purchase equivalent products', are you referring to new remortgage customers? And do you believe this will apply to the tracker products also?
I'm only looking for a LTV of less than 20%, and interest only payments only for 3 years, after that I'm hoping my maturing endowment policies will enable me to clear the mortgage. Doesn't seem a lot of sense in paying a hefty arrangement fee (£1,000 or so) for a 3 year deal. But the ones offering £500 or so fees now seem few and far between. Equally, I'm not keen on a 2 year deal as then I will need to pay another arrangement fee when I only have a year to run.
Thanks for the Woolwich advice, I will have a look at that one now.

Sorry, the cuts in their fixed rates only apply to remortgaging, rate switching (i.e. existing customers changing product), and people getting a further advance. If you are applying for a mortgage for a house purchase you are out of luck as you will still be paying the old higher rates on the 2 yr and 5 yr fixed rates.

What I meant was that Nationwide normally offer the same rates, if not better on house purchases, so I expect them to cut those rates as well next week, in all likelihood.

Tracker - Nationwide have shown no inclination to cut their tracker rates, and why would they when they are very competitive. The removal of the fee for existing customers switching products applies to trackers as well, but there is no sign of them wanting to cut the rates on them.

This is basically in line with the rest of the market at the moment, wholesale fixed rate funding has come down in price in the last couple of months (swaps) and lenders have started to follow suit and cut their rates also. The competition is definitely hottest for the lower risk customers so people with less than 25% deposit are still going to struggle to get great rates.

papi34

I have just got off the phone with nationwide. I'm an existing borrower with my fixed rate coming to an end in October. Their rates available from tomorrow according to the person I spoke to are

2,3,5 year fixed @5.98% with no reservation fee (existing borrowers)

2 Year tracker @ BOE + 0.98% with no reservation fee
2 Year tracker @ BOE + 0.68% with £1,499 fee
3 Year tracker @ BOE + 0.74% with no reservation fee.

The fixed rate deals do seem attractive.

leeloo1

Having thought about it a bit more, the only problem I have is how quickly Nationwide seem to be reducing their rates. Cos I've been keeping an eye on it as I knew I'd have to remortgage soon, I wrote down the rates, so:

16/7 - 5 yr fixed - 6.45% (no fee), 2 yr fixed - 6.98% (no fee)/ 6.58% (£599 fee)
18/7 - 5 yr fixed - 6.18% (no fee), 2 yr fixed - 6.58% (no fee)/ 6.18% (£599 fee)
8/8 - 2,3,5 year fixed - 5.98% (no fee)

So now I'm wondering whether to fix now or wait for another 2-3 weeks for the rates to drop again?!

Does anyone know - If I sign up to 1 of their no fee rates now and get the paperwork sent out but not sign it immediately, then, if the rates do drop in a couple of weeks, could I change to the new rate, or having agreed in principle to a new deal would I be tied to that???