Nationwide plugs 95% LTV deals
Thursday, 28 Feb 2008 13:00
Nationwide is promoting its 95 per cent loan-to-value (LTV) mortgage amid fears the market for high loans is drying up.
The building society said customers who wanted to borrow 95 per cent of their property's value could benefit financially by as much as £3,219 by choosing some of its products over other lenders.
Its two-year fixed-rate mortgages are currently at 6.45 per cent with a reservation and application fee of £499 and there's no higher lending charge.
The total cost of the deal over two years comes to £24,694, based on a 95 per cent LTV loan of £150,000, 25-year-term repayment mortgage.
The same loan, if purchased using Nationwide's two-year tracker mortgage, is currently at a rate of 6.18 per cent, with a £499 reservation and application fee. The total cost of two years is £24,091.
Matthew Carter, director of mortgages at Nationwide, said: "Nationwide's mortgages continue to offer excellent value for first-time buyers and those looking to borrow up to 95 per cent of the value of their property.
"Customers should be aware that the headline interest rate is not all they pay and must also take into account the fees and charges that form part of the mortgage deal."