Ian Scott International


Nationwide offers 5pc deposit mortgages for first time since 2008

It is just the latest lender to target borrowers with small deposits, offering £1bn in loans

Nationwide is offering mortgages to borrowers with a 5pc deposit for the first time since 2008.

The lender has made an additional £1bn available to first-time buyers and home movers with a small deposit.

The building society is offering a two-year fixed rate deal priced from 3.99pc with a £999 fee. It also has a three-year fix from 4.59pc and a five-year fix from 4.79pc. Both come with the same £999 fee.

The rates are not market-leading, but Nationwide offers first-time buyers an additional £500 cashback on mortgage deals.

In comparison, HSBC has a two-year fix for 3.79pc with a £99 fee, while Tesco Bank has a two-year fix with the same 3.99pc rate but a lower fee at £495.

TSB has a three-year “stepped” fix with an average rate of 4.32pc and a £995 fee and Clydesdale and Yorkshire banks have a five-year deal for 4.49pc which comes with no fee, a free valuation and £250 cashback.

Nationwide’s 5pc deposit loans are not part of the Government’s Help to Buy scheme.

Full article available here

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