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TODAY'S OTHER NEWS

Nationwide launches £1bn first-time buyer plan

Nationwide is aiming to boost first-time buyer mortgage lending with £1 billion of new low deposit products.

It is launching a range of new fixed-rates for homebuyers with a 5% deposit from today.

This will include sub-4% deals on two-year fixed rate deals, available both through brokers and direct.

The building society's 95% LTV mortgage deals are not part of any scheme, such as Help to Buy, and are available to both first time buyers and home movers.

Nationwide aims to support one in five first-time buyers into a home of their own.

It says market data suggests that 79% first time buyers choose to access mortgage deals through a broker and the new 95% LTV range will widen the choice brokers can offer to those with small deposits.

This is the first time Nationwide has offered 5% deposit mortgages outside the limits of a scheme to all customers since 2008.

Rates for the competitive range of 5% deposit mortgages start from 3.99% with a £999 fee for the two-year fixed rate deal. There are also three and five-year fixed rate deals, starting at 4.59% and 4.79% respectively.

In addition, first time buyers will continue to receive a £500 cashback on all Nationwide mortgage deals.

Nationwide’s flagship Save to Buy scheme, through which buyers commit to saving towards a deposit and in return receive a cashback of up to £1,000 on completion of their Save to Buy mortgage, will be available at a 0.20% discount.

Rates for the two-year fixed rate mortgage product start from 3.79% with a £999 fee.

Henry Jordan, Nationwide’s head of mortgages, said: “Nationwide’s move significantly increases the society’s lending in the first time buyer market and widens consumer choice.

“Nationwide also offers tangible benefits to mortgage customers that go beyond the competitive headline rates. This includes Nationwide’s £500 cashback offer to all first time buyers, or more if they use our Save to Buy mortgage products.

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