Nationwide Building Society Mortgages

Mortgage Rates from The Nationwide

The Nationwide Building Society is the largest mutual in the world and has its headquarters in Swindon Wiltshire.

They're the UK's second largest mortgage lender and have merged with, or purchased, other building societies such as the Anglia, the Portman, the Cheshire, the Derbyshire and the Dunfermline Building Society. There are many mortgage products to choose from including tracker and fixed rate mortgages.

Nationwide Building Society Variable Rate Products

There are several mortgage products that are based upon the Nationwide Building Society variable rate whether they be completely at the standard variable rate or a percentage above this for example as a tracker rate. You can't take out a direct variable mortgage with Nationwide Building Society although the SVR will be the rate you are placed upon once your initial deals has lapsed.

Tracker Rates

There are various tracker rate mortgage deals that range from two to three years and are generally available to new customers and some existing customers if they are moving or borrowing more (but not simply if their deal is ending or they are looking to switch mid-term). The rates vary on the amount you wish to borrow (some change over £250,000 loan), your loan to value and the initial rate you are looking for. Fees and charges are also variable but generally at least £396 for the cheapest and up to £1,896 in some cases. Early repayment charges may apply if you repay the whole amount in the deal period (ie: in the first two years of a two year tracker).

Capped Rate Mortgages

A capped rate simply means you pay a variable interest rate but it goes no higher than a certain amount if rates rise. Nationwide Building Society does not usually offer capped rate mortgages but it's worth looking on their site if this is what you are after.

Nationwide Building Society Fixed Rate Mortgages

These appear to be popular and there are a range of two year, three year, four year and five year fixed rate mortgage products currently available at competitive rates. The rate is completely fixed no matter what happens to the standard variable rate. Fees and charges are similar to the tracker mortgage products and so are the application fees.

Most products carry an arrangement fee or application fee anywhere from £396 to £1,896 depending on the risk you pose (ie: high or low loan to value percentages). Many of these application fees are refundable if you eventually take out the mortgage and it's best to check with the Bank itself or your mortgage advisor on how this all works in your circumstances.

The actual interest rate charged on each products varies depending on three main factors:

• Your loan to value (LTV) percentage (generally between 60% and 85% depending on what mortgage you are applying for).
• The amount of arrangement/ application fee you pay.
• The length of the initial interest rate for discounted and fixed products.

With the risk being taken out of the market the very best deals are found where your loan to value percentage is low. Rates can vary by over 1% and the highest are where the LTV is 90% or more. If your LTV is 75% or less than you'll find the best deal from Nationwide Building Society and all other banks.

With the Nationwide Building Society some products have no product fee and include a free house valuation and free legal costs but these products have a higher interest rate so the overall costs are similar. No matter what mortgage you are thinking of applying for you should seek professional expert advice to determine which product is best for your circumstances and the overall cost of comparison once all fees and charges together with the interest rate is taken into account.