Nottingham Building Society Launches Competitive Mortgage Option for First-Time Buyers

Its new 95% loan-to-value ratio mortgage’s fixed rate is not far behind the lowest mortgage rate on the market.

Nottingham Building Society launched a new 2-year 95% loan-to-value mortgage with a fixed-rate of 2.39%. This means its new product, which is only available via intermediaries, is just 0.02 percentage points off the lowest rate on the market.

The lender will target first-time buyers with its new mortgage, which includes a product fee of £999.

“It’s important to us to do what we can to help first-time buyers achieve their dreams,” said Christie Cook, Head of Mortgage Product at Nottingham Building Society.

In addition, Nottingham Building Society has also released another 2-year 95% loan-to-value product with a higher interest rate of 2.78%. This offer includes a £500 cashback offer and no product fees while both new offers come with a free valuation.

“We aim to keep evolving our products and services – including our focus on our offerings for first-time buyers and those with smaller deposits,” said Cook.

Although both offers remain competitive, they are not market-leading.

According to Moneyfacts data, Leeks United Building Society offer their 2-year 95% loan to value mortgage at a fixed rate of 2.37%. The offer also includes £995 in product fees but is only restricted to users in England and Wales.

Competition for its second product, which includes a 2 year fixed-rate of 2.78% and no product fees, is more abundant. 

Digital Mortgages by Atom Bank, Santander, Principality Building Society, and Clydesdale Bank all offer similar mortgage options at a fixed-rate of 2.64%, no additional product fees, and a free valuation. In comparison, Santander have given themselves the edge with a £250 cashback incentive.

If possible, first-time buyers should consider offers at a 90% loan to value ratio which will offer lower fixed-rates. Currently, Digital Mortgages by Atom Bank offer the lowest two-year fixed rate with a 90% loan to value ratio at 1.69% and £1,500 in product fees.

If you are currently looking for a mortgage, consider reading our weekly mortgage update. Each week we will provide updates on the lowest mortgage deals across the UK for your convenience. We also write similar editions for savings and Individual Savings Account (ISA) rates.  

Given that the average fixed-rate for 95% loan-to-value mortgage stood at 3.05% for February according to our data, both Nottingham Building Society offers remain highly competitive.

But on a broader scale, first-time buyers will be pleased to see an increase in availability among all products with a 95% loan-to-value.

In September last year, we recorded only 283 products on the market with a 95% loan-to-value ratio. This month, this number has increased to 335.

With increased choice in the market, it is no surprise that lenders like Nottingham Building Society are looking to make their products more attractive.