You're able to complete a rate switch on behalf of your client via NFI Online under the following circumstances:
- Your client is on a Nationwide Base Mortgage Rate (BMR) or Standard Mortgage Rate (SMR) product.
- Your client is currently on a tracker product and doesn't have an early repayment charge (ERC).
- Your client is within five months of their product expiring. You’ll be offered a maximum of three start dates, the earliest being the first month of the 3 months ERC free waiver period. If the preferred start date is not showing, then you may need to create a new case in the next calendar month.
- Your client is not amending their existing mortgage term.
- Your client’s LTV doesn’t exceed 95%. Clients with a loan of over 95% LTV could be eligible to switch their mortgage, but need to contact Nationwide directly.
If your client is looking to switch their product, they should be aware that:
- Rate switches are subject to an automated property valuation. This will be used to determine the current loan to value for the purposes of product selection. Results are based on regional price movements in the UK. Differences in quality of fittings and decoration won't be considered.
- Eligibility to switch a product is subject to your client having an account that is no more than one month in arrears.
- A rate switch application won't be able to proceed if the property is let.
- Rate switch applications for clients who do not have a Direct Debit cannot be submitted by intermediaries.
- Clients' subject to a Bankruptcy Order or Individual Voluntary Arrangement (IVA) aren't eligible to complete a rate switch until their bankruptcy or IVA is discharged and the trustee has confirmed they no longer hold an interest in the mortgage.
Read our Rate Switch FAQs to see if we’ve answered any of your queries.
Switch and Fix
For tracker mortgages reserved prior to 2 May 2014: Client has the option to switch to a fixed rate at any point in the deal period, with no ERC (a product fee may apply).
For tracker mortgages reserved from 2 May 2014: As no ERC applies, your client can switch to a new mortgage deal without incurring a penalty (a product fee may apply).
To switch a tracker product with an ERC, or to switch a fixed rate product mid-deal, your client must complete this with Nationwide directly and it will be subject to the relevant ERC's. See our customer website for further details.
It isn't possible to complete a rate switch through MTE.
If your client is switching multiple accounts (up to a maximum of four per application), only one product fee will be charged per application.
Early repayment charge (ERC)
Your client won’t have to pay an ERC if:
- They're switching a tracker product to a fixed rate product.
- The product is being reserved within three months of the end of the clients existing product term.
How to submit a rate switch case
Most offers for rate switch applications can be produced via NFI Online. The offer is produced at the end of the application, prior to confirming the switch and paying the fee.
Download our step by step Rate switch keying guide for more information.
Rate switch exceptions
The following rate switch scenarios need to be submitted as paper applications:
- Where there are more than two clients on the existing mortgage.
- Where your client is switching more than four accounts.
- Where your client is serving in the armed forces with a British Forces Post Office (BFPO) address and their property is currently let.
To request a manual offer for an exception, please complete the Rate Switch Application Form and follow the instructions on the form. Once this has been completed by our team, you will need to complete our Rate Switch Offer Acceptance Form to confirm that your client has accepted the offer.
Your client may be at risk of losing features when switching to a new mortgage product. For more information, please go to the borrow back section.
Rate Switch with Additional Borrowing
Where your client wants to complete a rate switch and also apply for additional borrowing, this will need to be processed as two separate applications. You can complete the rate switch on behalf of your client, but if they wish to take additional borrowing, they will need to speak to Nationwide directly. Please be aware, if your client wants to proceed with both applications, this may result in them paying two fees depending on whether products with fees have been chosen.
Changes to mortgage term or repayment type
Your client will need to call 0800 30 20 10 to change their mortgage term or repayment method. These are handled separately from the rate switch process. Either transaction can be completed first, depending on you and your client’s preference.
Rate Switch dates
Rate switches always take effect from the 1st of the month. Switcher applications must be submitted and accepted - see the table below for full details. After this time, the new deal won’t apply until the 1st of the following month.
|To complete a switch for||Last submission/acceptance date|
|March 2019||10am on 23 February 2019|
|April 2019||10am on 24 March 2019|
|May 2019||10am on 25 April 2019|
|June 2019||10am on 25 May 2019|
|July 2019||10am on 23 June 2019|
|August 2019||10am on 26 July 2019|
|September 2019||10am on 25 August 2019|
|October 2019||10am on 23 September 2019|
|November 2019||10am on 26 October 2019|
|December 2019||10am on 24 November 2019|
|January 2020||10am on 26 December 2019|