Nationwide launches NewBuy products

The mutual will offer a 3-year fixed rate at 5.69% with a £900 product fee and £99 booking fee for house purchase and existing customers moving home.

A fee-free version also exists at a rate of 5.99% with a £99 booking fee.

It will also offer a 5-year fixed rate at 5.99% with a £900 product fee. A fee-free version also exists at a rate of 6.19% with a £99 booking fee.

The rates match those currently available for customers purchasing a second hand property at 90% LTV.

Currently the products are only available through intermediaries however Nationwide said it would make the products available through branches at a later date.

Andrew Baddeley-Chappell, head of mortgage strategy and policy at Nationwide, said: “Nationwide is committed to supporting the NewBuy scheme and is one of just a handful of lenders making products available from launch.

“The widening gap in housing provision is undisputed. Nationwide is supportive of this initiative that enables a return to lower deposit mortgages within the new-build sector.

“NewBuy will boost the supply of properties, increase employment, and provide affordable mortgages to those with more modest deposits, including first-time buyers.”