Nationwide announces new Let to Buy scheme
Nationwide Building Society has made another move in the mortgage tussle by announcing new loyalty scheme for their customers. The new initiative will see customers converting their main home into a Buy to Let property through the The Mortgage Works, while purchasing a new residential home for themselves to live in.
Loyalty rewarded
From today, a dedicated set of Let to Buy products aimed at loyal consumers will be launched through the The Mortgage Works, which is part of the Nationwide Group. As a result, customers will now have the chance to apply for a Let to Buy mortgage on their existing property with The Mortgage Works and the onward residential mortgage for their new home at the same time.
Those customers who both remortgage their existing home as a Buy to Let property and take out a new residential mortgage through Nationwide will receive a £250 loyalty cashback.
The move signals the first time that Nationwide has given the opportunity of a dual-venture with their residential side teaming up with their specialist lender The Mortgage Works.
Paul Wootton, Head of Specialist Lending at the firm, said that, ‘Nationwide is taking a joined-up approach to helping home movers turn their existing home into a buy to let, while purchasing a new home in which to live. We are making it easier and more flexible for our customers to complete the process of securing two different types of home loan at the same time, helping those who may wish to live elsewhere but want to turn their existing property into an investment opportunity.’[1]
Additionally, customers will be able to apply for a new residential mortgage of up to 85% LTV when applying for a The Mortgage Works Let to Buy loan. These new loyalty products are only available through intermediaries, but will be open to both existing and new Nationwide mortgage customers.
Nationwide announces new Let to Buy scheme
Options
David Hollingworth, Associate Director at intermediary firm London and Country, said, ‘a move to a new property can often be the point when an owner makes the decision to become a landlord. Linking the two sides of the let to buy coin makes sense and should give brokers and their customers the option of a more joined up solution with added cost incentives.’[1]
Some of the most applicable Let to Buy products available to customers who complete the subsequent residential purchase with the Nationwide are:
2 year fixed rate with £995 fee, available up to 65% LTV at 2.99%.
2 year fixed rate with £995 fee, available up to 75% LTV at 4.09%.
5 year fixed rate with £995 fee, available up to 65% LTV at 3.99%.
5 year fixed rate with £995 fee, available up to 75% LTV at 4.49%.[1]
As mentioned, all of these rates come with a free valuation and £250 cashback.
[1] http://www.propertyreporter.co.uk/finance/nationwide-announces-new-btl-homemover-loyalty-deal.html