From This is Money:
Nationwide Building Society has hit the headlines after promoting its 95% mortgages for existing borrowers looking to remortgage or move home.
These deals are not new and the building society has offered mortgages to those with small deposits for some time, however, it has promoted them in its latest round of mortgage deals.
The mortgages for those with just a 5% deposit are only for existing Nationwide borrowers, either moving home or remortgaging, and are available as tracker of fixed rates.
Moving home at 95%
For those moving home the fixed rates at 95% are very expensive: a two-year fixed rate deal starts at 6.48% with a fee of £896 and rises to 6.88% with no fee. A five-year fixed rate costs an eye-watering 7.43% with an £896 fee.
The trackers offer a better initial rate at 95% but will become expensive when interest rates rise. A two-year tracker starts at 5.33% with an £896 fee: tracking a full 4.83% above base rate this would hit 6.83% if the base r…