Nationwide cuts upfront costs for homebuyers

November 19, 2015 by Brendan O'Neill

House Prices

On the 11th November 2015, the Nationwide Building Society withdrew the fee for a standard valuation from its mortgage products.

This, along with a number of other changes made by the building society, will make it easier for homebuyers to afford their mortgage costs. Whether a mortgage is secured directly or through an intermediary, buyers will be entitled to a fee-free standard valuation. This will save an average of £200 for purchasers. Customers who request a Nationwide Homebuyers Report, a more in-depth valuation, will pay a reduced fee which will start at £150, depending on the property price.

Cash back will also be introduced, with £250 given to those customers who have a Nationwide Flex account. First time buyers will receive £500 cash back when it signs up for one of the mortgage products at the building society. A new 90 % loan to value tracker mortgage product will be introduced with two options. One product will have a 2.49% interest rate and a fee of £999, while the other option is to pay slightly more interest at 2.89% but no fee. Individuals will have to calculate the beneficial option to suit their particular circumstances. A mortgage adviser will be able to assist with this decision, and any other products that are available with other lenders. Advisers who have taken their CeMAP exam have the necessary knowledge required to assist with decisions when buying a new home.

The head of mortgages at Nationwide said that the changes have been made as the building society appreciates the burden of upfront costs for customers.