Nationwide cuts further advance rates

Yuan Phoon

September 8, 2011

The products will allow homeowners to borrow at mortgage rates with or without a product fee using a further advance.

These rates are typically lower than other forms of borrowing, such as personal loans, making it cheaper to fund home improvements,

Further advances of £25,000 or more are aligned to its core mortgage rates, representing a reduction of 0.80%. They are available with a £900 or £0 product fee, each product has a £99 non-refundable booking fee.

Further advances between £5,000 and £24,999 have no product fees however each product has a £99 non-refundable booking fee.

Martyn Dyson, head of mortgages at Nationwide, said: “We believe our new approach will ensure our deals continue to be among the most competitive in the market place, enabling us to both retain the simplicity of our range and improve the choice we can offer customers.

“Removing product fees for loans under £25,000 should make a real difference to those customers wishing to complete a smaller project such as a bathroom or kitchen, as our experience shows their preference is for low upfront costs.”

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