Applying for a mortgage is a big part of most people’s moving house journey. There are loads of different banks and lenders to choose between. This includes Nationwide, one of the UK’s most popular mortgage providers. They offer a range of mortgage products to suit your unique needs.
Nationwide is one of the UK’s biggest mortgage providers. They’re also one of the oldest, starting out as The Provident Union Building Society in 1846. In 2018, Nationwide won the Which? Best Banking Brand of the Year award and consistently score highly for their customer service and varied product offering.
Nationwide has one of the biggest mortgage offerings, with over 170 options to suit your unique needs. As well as mortgages for home movers (those selling an existing property and buying another) and first-time buyers, you could also secure:
If you’re buying a property that you’ll then rent out, you have the option of a Nationwide buy to let mortgage. These are managed through The Mortgage Works – Nationwide’s specialist mortgage lending service for buy-to-lets.
The main things to know about Nationwide buy-to-let mortgages is that:
You can only borrow 75% or less of the total value of the property you’re buying
You must borrow over £25,000
You have to be over 21 years old and a resident of the UK for the past 3 years
The length of your mortgage period and how much you can borrow will depend on your circumstances. What’s more, you’ll find many buy-to-let mortgages with Nationwide feature additional extras such as free valuations and cashback deals.
Suppose you have kids or another family member who would like to jump on the property ladder but can’t quite afford it. In that case, a family deposit mortgage could help. This is essentially a way for you to give them a leg-up by borrowing money from Nationwide against your own home to then gift to your loved one. They’ll then use it to buy their property.
Note that Nationwide family deposit mortgages are only available to current Nationwide customers. These can only help family members who are buying their first home and already have an agreement in principle in place.
Designed for those aged 55 to 84 (or 55 to 94 if you’re an existing customer), Nationwide’s later life mortgages allow you to have a little extra money to enjoy during your retirement.
There are 3 different kinds you can choose from: lifetime mortgages, retirement interest-only mortgages, and retirement capital & interest mortgages. They all have their own benefits and are intended to leave you with more money to spend in your later years.
If your current mortgage terms are coming to an end or you’d like to try and reduce your mortgage payments, you might want to remortgage your property.
Nationwide offers remortgages and even has incentives for new customers, including £500 cashback or free legal fees. Before you apply for a remortgage, you’ll need to find out how much your house is worth by having a home valuation done. The value of your home may have gone up or down since you first secured a mortgage.
As with any mortgage, the exact amount you’ll be able to borrow with Nationwide will depend on a range of criteria, including:
Your credit history
Your regular expenses
Your deposit amount
In general, you could be eligible to borrow up to 4.75 times your annual income (either your own or joint if you’re buying with another person) through Nationwide. This could end up being less, depending on the criteria listed above.
When it comes to the loan to value (LTV) of the mortgage you’ll be able to get, Nationwide has a maximum LTV of 90%. Loan to value simply means your mortgage’s size based on the difference between what you want to borrow and your property’s total value. In the case of Nationwide, the LTV you’re able to get will not only depend on their mortgage criteria but also if you’re a first-time buyer or not.
For first time buyers, you’ll likely only be able to get up to a 90% mortgage. For home movers and those remortgaging, this could go up to 95%. If you’re applying for a 90% or 95% LTV mortgage, you’ll likely only be able to borrow up to 4.5 times your annual income.
Note that Nationwide additionally has a minimum limit for mortgages. Those new to Nationwide must borrow at least £25,000, while with existing customers it’s £5000.
Depending on which type of mortgage you go for with Nationwide, your rate will be different. When we talk about mortgage rates, we’re referring to the interest you’ll end up paying on top of what you pay for your mortgage loan.
Here’s a rundown of some of Nationwide’s mortgage rates:
A fixed mortgage rate is when the interest rate is set at one figure and stays the same for the duration of an agreed period (which could be between 2 and 10 years). This means you’ll pay the same amount of interest every month.
Fixed-rate mortgages are one of Nationwide’s most popular types. In mid-2020, the average rate for any fixed-rate mortgage was 2.36%. However, this can change depending on your individual circumstances and finances.
A tracker rate mortgage is set against the Bank of England Base Rate. This means your interest can go up and down just as the Base Rate does. At Nationwide, they call this the Base Mortgage Rate (BMR) and promise to keep your specific rate within 2% of the Bank of England Base Rate.
If the Base Rate changes due to a decision made by the Bank of England’s Monetary Policy Committee, you’ll see the effects of it from the 1st day of the following month. Don’t worry, though; Nationwide will let you know in writing about any changes in advance.
After the initial terms of your tracker or fixed-rate mortgage come to an end, Nationwide will place you on their variable rate. This is also known as their Standard Mortgage Rate (SMR), and it’s set by Nationwide. This means they have the power to move your interest rate up or down.
If you decide to go for a Nationwide mortgage and find you want to sell before you’ve paid it off, it is possible to keep your mortgage for your next property. Known as porting your mortgage, this is a good option for people who are happy with their mortgage terms and don’t want the hassle of applying for a new one or the charges associated with exiting their existing one.
Nationwide lets you port almost all of their mortgages. You’ll be able to find exact details about this on your official mortgage documents. Note that Nationwide doesn’t allow you to port your mortgage online; you’ll need to do it over the phone with an adviser.
Sometimes life happens, and we find ourselves with slightly less money than we’d like or expect. If this is the case and you’re struggling to meet your monthly mortgages, you could apply for a mortgage holiday.
A mortgage holiday is when your monthly payment is paused or temporarily reduced. Nationwide allows payment holidays on some of their mortgages, lasting from 1 month to 12 months depending on your eligibility.
You’ll be able to see if a payment holiday is a feature of your mortgage by merely checking over the paperwork. You can then request the holiday over the phone, but not in a branch or online. Should you pause your monthly repayments, your interest will continue, so it may take you longer to pay back your Nationwide mortgage.
Keen to pay off your mortgage a little quicker? It’s possible to make regular monthly overpayments or a lump sum payment on Nationwide mortgages.
Making overpayments is an excellent way to reduce how much interest you’ll pay in total and pay off your mortgage quicker. Most Nationwide mortgages will set out an overpayment allowance, from 10% of your total mortgage a year to an unlimited amount. You’ll find these details in your mortgage agreement. As a general guide, the Nationwide overpayment allowance tends to be:
£500 a month for Nationwide mortgages set up between 1 February 2001 and 28 May 2013
10% of your overall loan per year for Nationwide mortgages set up on or after 29 May 2013
An unlimited amount per year for Nationwide mortgages set up on or after 2 May 2014
An unlimited amount if you set up a Standard Mortgage Rate or Base Mortgage Rate with Nationwide
If you go beyond your overpayment allowance, you might have to pay an Early Repayment Charge. Again, this will be set out in your mortgage terms. You could also be charged if you pay back your entire mortgage before your deal ends or switch to another company while you’re still in your Nationwide mortgage agreement period.
It’s possible to apply for and manage most mortgages entirely online with Nationwide. You can start your application and complete it at your own pace, saving it and then returning to it at a later date.
In certain circumstances, you’ll need to apply for your Nationwide mortgage over the phone. This includes:
If you’re trying to borrow more than 90% of your total property’s value
You’re using a Help to Buy, Right to Buy, Forces Help to Buy or shared ownership scheme to buy your property
The terms of your required mortgage will take you beyond retirement age
To begin your Nationwide mortgage application either online or over the phone, you’ll need the following:
An agreement in principle (see below)
Payslips to prove your income
If you’re self-employed, your accountant’s details or two years’ worth of tax returns
A current employment contract if you’re a contract worker
Proof of any other income and support, whether that’s a Disability Allowance or pension payment
Up to 6 months’ worth of bank statements
Proof of identity and current address
Proof of a deposit
An agreement in principle is a document that sets out what a bank or lender is willing to loan you for your mortgage. You’ll need to apply for this before you start your mortgage application. It’ll then be seen as proof that you should, in principle, be able to pay back your monthly repayments.
Nationwide like to call this a decision in principle (DIP). It’s part of their overall mortgage application process. However, securing a DIP from Nationwide doesn’t mean you must go for a Nationwide mortgage.
How long it takes to have your mortgage application approved can vary. However, usually, you’ll receive an offer of a mortgage from Nationwide within 2 weeks. Not providing all the relevant paperwork to begin with may slow down your application.
Once you’ve accepted your mortgage offer, Nationwide will then transfer the funds for your sale within 7 days. After that, you’ll be able to manage your mortgage online, including looking at your monthly payments, submitting any overpayments and reviewing statements.
Not just one of the largest UK mortgage providers, Nationwide is also one of the most popular. In a survey done by Which? in 2020, they came joint 2nd out of 23 mortgage lenders. They also currently have a 4.2-star rating on Trustpilot.
With so many mortgage options out there, you may want to make a comparison from both Nationwide and numerous other mortgage providers. Luckily, it’s easy to compare mortgages with our handy mortgage calculator. Simply submit all the relevant details to receive tailored mortgage deal options and an estimate of what you might be able to borrow.
For more general information on mortgages, whether that’s a breakdown of different mortgage types or advice on deposit amounts, take a look at our mortgages page.