Nationwide is sweetening the deal for homeowners by cutting mortgage rates by up to 0.25 percentage points on a selection of its two, three, and five-year fixed-rate products. The building society’s lowest rate, 3.89%, is now available to first-timers and home-movers for two-year and five-year fixed-rate mortgages.
Nationwide has made it clear that its ongoing modifications are geared towards offering home movers the same attractive rates, or even better deals, than those presented to newcomers.
Henry Jordan, Nationwide’s Director of Home, said: “We know that rate is an important factor for borrowers looking to buy their first home or move onto their next. These latest cuts should put Nationwide firmly on the radar for first-time buyers and home movers as we continue to be one of the most competitively priced lenders in the market.”
New and existing customers moving house
According to the Daily Record, cuts of up to 0.25% across two, three and five-year fixed rate products up to 95% LTV, include:
- Two-year fixed rate at 85% LTV with a £999 fee is 4.40% (reduced by 0.09%)
- Two-year fixed rate at 60% LTV with a £999 fee is 3.94% (reduced by 0.25%)
- Five-year fixed rate at 60% LTV with a £999 fee is 3.94% (reduced by 0.13%)
- Five-year fixed rate at 60% LTV a £1,499 fee is 3.89% (reduced by 0.13%)
- Two-year fixed rate at 60% LTV with a £1,499 fee is 3.89% (reduced by 0.25%)
First-time buyers
Reductions of up to 0.24% across two and three-year fixed-rate products up to 95% LTV are available to first-time buyers. This encompasses:
- Two-year fixed rate at 60% LTV with a £999 fee is 4.14% (reduced by 0.20%)
- Two-year fixed rate at 60% LTV with a £1,499 fee2 is 4.09% (reduced by 0.20%)
- Two-year fixed rate at 90% LTV with a £999 fee is 4.72% (reduced by 0.10%)
Further information on the new mortgage deals can be found at the Nationwide website here.
Avoid these common mortgage mistakes
Applying for a mortgage can be one of the most rewarding times in your life, particularly if you’ve been squirrelling away money for that crucial deposit and have finally stumbled upon your dream home.
However, many individuals may not realise that several minor and seemingly inconsequential factors could result in the rejection of their mortgage application.
A recent survey by consumer group Which? revealed that 41% of 18 to 24-year-olds have had a mortgage application turned down before successfully purchasing their first property.
That’s why Jonathan Bone, Head of Mortgages at Better.co.uk, has offered several key points prospective homeowners should consider before applying, to help them understand and get it right the first time.
1. Not being on the electoral roll
Lenders often use the electoral roll to verify the accuracy of the address provided by the applicant. Moreover, not being registered on the electoral roll can negatively impact your credit score, potentially flagging you as a risk to lenders.
If you’re not currently registered on the electoral roll and are considering applying for a mortgage, it’s advisable to register as soon as possible. The process is straightforward, can be completed online, and is entirely free of charge.
2. Admin errors
Simple administrative errors when filling out paperwork can be a completely avoidable reason for rejection of some mortgage applications. These mistakes could include incorrectly entering your address or making spelling errors.
Therefore, it’s crucial to take your time and double-check everything is correct before submitting any forms to the lender.
3. Small betting or gambling transactions
While an occasional lottery ticket purchase is unlikely to result in outright rejection of your application, it’s crucial to be mindful about regular gambling bets.
A lender will scrutinise each gambling transaction, so if it’s causing financial issues (such as habitual spending), it may raise concerns about your reliability in making repayments.
4. Getting a new job even if it pays more
Securing a new job that offers a higher salary is usually cause for celebration. However, if this occurs during your mortgage application process, it can actually pose problems in terms of approval.
Most lenders require evidence that you’ve been employed in a job providing a stable income for a significant period.
While a higher income might seem beneficial and enhance your affordability, someone still in their probationary period at work might appear riskier to some lenders – it entirely depends on specific lenders’ acceptance criteria.
5. Being self-employed without any proof of income
Being self-employed can pose a significant challenge when applying for a mortgage, as it can be difficult to demonstrate income stability to lenders without the regular payslips that come with traditional employment.
However, this doesn’t mean obtaining a mortgage is impossible for the self-employed; it simply requires proof of a steady income. This can be achieved by providing evidence of consistent earnings and tax payments.
Suppose you can provide this information over two years or more. In that case, lenders will better understand your monthly income fluctuations and assess whether you pose a financial risk.
6. Applying for too much credit at once
If you plan on taking out a mortgage, consider how many credit applications you make at once, like car loans or credit card applications. Multiple loan applications can raise red flags with lenders and make them question your ability to repay on time.
7. Not having a paper trail of your deposit
Another potential pitfall is not having a paper trail for your deposit. For instance, if you’ve received money as a gift, you need to prove its origin. Ensure you have a paper trail showing the money leaving and entering accounts so the lender can trace it back to your accounts.
Failure to provide this evidence can delay your application, and if you can’t prove where the money came from, it may not be included in your application.
8. Joke references when transferring money
We’ve all been there, needing to transfer money to a friend or relative for something we owe them. It could be for a takeaway pizza after a chilled night in or a more substantial sum, but the reference you attach to that transaction is crucial.
Although you might think it would be humorous to make an inappropriate joke about what the person is receiving money for, it can lead to your mortgage application being rejected by lenders.
As part of the mortgage application process, you usually must provide three months’ bank statements for the lender to review. If you have ‘questionable’ spending on these, an application may automatically be declined with no option to appeal.