Nationwide courts first-time buyers

Nationwide Building Society has mixed news for new mortgage customers.

From 1st May, the lender aims to help those getting a foot on the property ladder with an offer on its three-year tracker and fixed-rate mortgages.

First-time buyers applying to the building society direct will be eligible for a £300 discount on their reservation fee and a £100 discount on legal fees, if they use the group’s recommended supplier.

On the three-year fix, interest rates start at 5.75% and the three-year tracker is available from 5.74%. For both products maximum loan-to-value (LTV) ratio is 95%.

Meanwhile, the lender is reducing its maximum LTV to 90% on all other products, for new borrowers.

It has also capped loans for new customers at £500,000 and upped the deposit requirement on its standard variable mortgage to a minimum of 25%.

The move bring the demise of the 95% loan closer, as Lloyds TSB will now only lend 95% of a property’s value to new mortgage customers who are already account holders, or have some other product with the bank.

Meanwhile, Abbey only offers 95% LTV on its five-year fixed-rate and standard variable rate loans and Halifax has applied higher interest rates to its entire 95% LTV range.

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