Nationwide Building Society has launched a new loyalty initiative for customers converting their existing main residence into a buy-to-let through The Mortgage Works (TMW) to rent out, while at the same time purchasing a residential property to live in.
A new set of dedicated loyalty let-to-buy products have been launched through TMW, a subsidiary of Nationwide. Customers will now have the opportunity to apply simultaneously for a let-to-buy mortgage on their existing property with TMW as well as the onward residential mortgage for their new property through Nationwide.
Those customers remortgaging their current home as a buy-to-let with TMW and completing their new residential mortgage through Nationwide will be rewarded with a £250 loyalty cashback.
It is the first time Nationwide has offered a dual-branded proposition combining both Nationwide’s residential mortgage arm and the Nationwide Group’s specialist lender TMW.
Paul Wootton, head of specialist lending at Nationwide, said: “Nationwide is taking a joined-up approach to helping home movers turn their existing home into a buy-to-let, while purchasing a new home in which to live. We are making it easier and more flexible for our customers to complete the process of securing two different types of home loan at the same time, helping those who may wish to live elsewhere but want to turn their existing property into an investment opportunity.
“Customers who complete both transactions through the Nationwide Group will receive a £250 cashback as a loyalty reward. This could help assist with moving costs or added legal fees that can be associated with completing two mortgages at once.”
Customers will be able to apply for a new residential mortgage with Nationwide of up to 85% loan to value (LTV) when applying for a TMW let-to-buy loan. The new let-to-buy loyalty products, and the new Nationwide process, are available only through intermediaries and will be available to both existing mortgage customers and those new to Nationwide.
In addition, all TMW let-to-buy mortgage customers will receive a free standard valuation as part of a revised range.
David Hollingworth, associate director at intermediary firm London & Country, said: “A move to a new property can often be the point when an owner makes the decision to become a landlord. Linking the two sides of the let-to-buy coin makes sense and should give brokers and their customers the option of a more joined up solution with added cost incentives.”
The key TMW Let to Buy products available to customers completing the onward residential purchase through Nationwide are as follows:
- Two-year fixed rate with £995 fee, available up to 65% LTV at 2.99%.
- Two-year fixed rate with £995 fee, available up to 75% LTV at 4.09%.
- Five-year fixed rate with £995 fee, available up to 65% LTV at 3.99%.
- Five-year fixed rate with £995 fee, available up to 75% LTV at 4.49%.
New customers to Nationwide will have access to the core mortgage range. Existing Nationwide mortgage customers will be eligible for the 0.10% loyalty discount and will be eligible to port their existing product as usual.