Nationwide Building Society has revealed the rates for its range of 90 per cent loan to value (LTV) deals which will be launched next week.
It is also increasing rates on its 85 per cent LTV range and some of its shared equity deals from 16 July.
The 90 per cent LTV products are available from 20 July only to first-time buyers and include fixed rate and tracker deals, with fee and no fee options.
The following products which come with £500 cashback and free valuations will be open to first-time buyers, with no set limit on the number available:
- Two-year fixed rates: 2.49 per cent with a £999 fee; 2.74 per cent with no fee
- Three-year fixed rates: 2.79 per cent with a £999 fee; 2.99 per cent with no fee
- Five-year fixed rates: 2.79 per cent with a £999 fee; 2.99 per cent with no fee
- Two-year tracker rates: 2.59 per cent with a £999 fee; 2.84 per cent with no fee
All products are available through brokers and direct with Nationwide.
The mutual has amended its criteria for these products.
The property must be a house of at least two-years old and the maximum term is 25 years, while applicants will be subject to enhanced affordability and credit score criteria.
Nationwide Building Society director of mortgages Henry Jordan said: “Our return to the 90 per cent market is aimed at helping people into a home of their own, but it is also important to give first-time buyers a choice to suit their personal situation.
“That is why we are launching a range of fixed and tracker rate mortgages with different term and fee options.
“Given the competitive rates on offer, we expect these to prove extremely popular when they launch on Monday.
“By not having a set limit on the number of mortgages available, we aim to help as many first-time buyers get a foot on the ladder as we can at a time many may feel like they have been frozen out.”
In addition, on 16 July Nationwide will be increasing rates on its 85 per cent LTV range by up to 0.45 per cent, while rates on the mutual’s shared equity range at 60 per cent and 75 per cent LTV range will increase by 0.15 per cent.
Jordan continued: “These rate changes reflect a continually evolving market but will also ensure that the society can support all mortgage applications and maintain the levels of service expected of us, especially once our new 90 per cent LTV range launches on Monday.”
Owain Thomas is features and contributing editor of Mortgage Solutions and editor of Specialist Lending Solutions.
He also has experience in the protection, pensions, workplace benefits and HR areas.
Owain has won two Headline Money Awards and the Protection Review’s Journalist of the Year award.