Contributors:
Quick Summary
- Nationwide equity release plans are only for existing clients, but for new members, they currently roll out numerous mortgage choices, personal banking for savings, and investment guidance for the over-55 crowd, perfect for refinancing or for those eyeing retirement without tapping into home equity.
- Nationwide's life insurance and wealth management could be key players in your wider financial game plan, possibly sidelining equity release.
- Getting the lowdown from an independent financial advisor on Nationwide's lineup can ensure it fits your retirement puzzle.
It makes sense to consider Nationwide equity release since it has over 16 million members, making it the UK’s largest building society.1
Is it right for you?
In This Article, You Will Discover:
In this review, our expert researchers take a close look at this mutual’s equity release options, what sets them apart, and finds the best company for equity release.
Find out here if it still offers equity release to new customers or if you should also be considering alternative options.
NB: Fundweb is an unrelated and independent 3rd-party provider, and the information provided in this article are the opinions of Fundweb only and may not reflect the views of Nationwide. This article is not to be construed as advice, nor is it a solicitation to enter any financial product provided by Nationwide.
What Are Equity Release Offerings?
It's a financial strategy designed for seniors, equity release offerings means to access the wealth stored in their homes to meet specific financial needs.
Who Is Nationwide Building Society?
Founded in the late 19th century in England, Nationwide Building Society serves more than 16 million members with a balance sheet of £272bn, making it the largest building society in the UK.2
Since it is not a bank, the building society is not managed by shareholders like regular banks, but instead, owned by its members, which are anybody with a Nationwide account, investment or mortgage.
This means that the mutual is managed to benefit all its members and therefore run to help the communities around it.3
What Is the Nationwide Equity Release Review?
The Nationwide Equity Release Review offers a comprehensive analysis of Nationwide's equity release schemes.
It covers aspects such as interest rates, flexibility, customer service, and overall performance, revealing insights into the effectiveness of Nationwide's Equity Release products from a customer's perspective.
This review is a valuable resource for homeowners looking to tap into their property's equity.
The review's uniqueness lies in its detailed examination of Nationwide's products, rather than just a generic overview of equity release options.
We've found that it incorporates feedback from actual users, adding a personal touch to the professional analysis.
Through our expertise, we can affirm that such reviews play an instrumental role in helping potential customers make informed decisions.
What Is Nationwide’s Historical Footprint in the Equity Release Sector?
In 2017, Nationwide introduced a selection of equity release products as part of its later-life mortgage range.4
These products - Retirement Capital and Interest (RCI) mortgage, Retirement Interest-only (RIO) mortgages, and Lifetime mortgage - catered to older homeowners, enabling them to utilise their home's equity while retaining ownership.
Currently, Nationwide has halted acceptance of new applications for this range, although it continues to service its existing customers.5
Does Nationwide Offer Equity Release Currently?
No, while Nationwide no longer offers new lifetime or retirement mortgages, existing plan members can consult an advisor regarding potential plan alterations or further borrowing.
How Has Nationwide's Equity Release Products Changed?
After the mini-Budget announcement in September 2022 of significant interest rate hikes,
Nationwide and several other providers, decided to withdraw its equity release products.
Features, Benefits, and Options for Existing Nationwide Equity Release Customers
Existing Nationwide customers can benefit from several features:
- Borrowing between £10,000 and £1 million (subject to UK residence).
- A lifetime fixed deal period
- Competitive interest rates.*
- Loan-to-value (LTV) ratios determined by age
- No Negative Equity Guarantee
- Downsizing Protection for loans older than 5 years
- The flexibility of annual voluntary repayments up to 10% of the capital without early repayment fees.
*Note: Interest rate figures may vary over time.
What Is The Eligibility and Procedure for Application?
To qualify, one must be an existing Nationwide client desiring to alter plans.
Eligible existing clients can:
- Seek additional equity with its lifetime mortgage.
- Remortgage to a new plan as its RIO or RCI matures.
For further assistance, clients can contact Nationwide's advisors at 0330 162 71 48.
How are Interest Rates and Fees Structured?
The interest rates for existing customers are calculated according to customers' age and the amount they are borrowing.
Currently, equity release rates are between 6.14% to 6.46%.*
*While we regularly review our rates, these may have changed since our last update.
Visit Nationwide’s website6 for its latest interest rates.*
For fee details, customers should refer to their contracts as Nationwide’s website does not provide this information.
*Note: Interest rate figures may vary over time.
Why Opt for Nationwide?
Being an award-winning institution governed by the Financial Conduct Authority (FCA) and a member of the Equity Release Council, Nationwide is synonymous with trust and reliability.
Its equity release schemes also come with a No Negative Equity Guarantee.
Nationwide's Unique Proposition
Its mutual status, with ownership vested in its members, empowers them to influence the society's operations, thus tailoring products and services optimally.
What Are The Benefits and Drawbacks of Nationwide?
Although Nationwide is a trusted provider it is still important to explore the benefits and drawbacks before making a final choice.
Benefits to explore:
- Customer-centric focus
- Mutual ownership emphasising members' needs over shareholder profits.
- Pioneering technology adoption, like the mobile banking app.
Drawbacks to explore:
- A relatively restricted branch network.
- Limited scope of international services.
- Potential for higher fees on certain products.
Flexibility and Customisation
It offers its existing customers the flexibility to modify its current equity release plans.
But do note, early loan payoff may attract substantial charges.
Does Nationwide's Have an Equity Release Calculator?
No, its website does not have an equity release calculator since it no longer offers new equity release plans.
However, you can use a free calculator here.
Customer Feedback and Ratings
Although Nationwide is monumental in scale, online reviews are mixed.
It is advisable to rely on personal experience since many review platforms only represent a minuscule portion of clientele.
Online reviews to explore:
How Does Nationwide Handle Complaints?
Nationwide takes a customer-oriented approach with an established complaint process in place.
There are 6 ways to register a complaint:
- Online chat
- Phone: UK: 0800 30 20 15 and from Abroad: +44 1793 65 67 89
- Branch
- Writing: Addressed to: The Complaints Team, Nationwide Building Society NW 2020 Swindon, SN38 1NW.
- Text relay
- SignVideo
How Did We Review Nationwide?
We reviewed Nationwide based on the following:
- Reputation and Track Record: We value companies with a strong history, evident from their years in business, the awards they have earned, and positive customer feedback.
- Financial Stability: A company's financial robustness is key; we look for those with a solid footing and the means to honor long-term obligations.
- Diverse Offerings: Companies with a varied range of equity release schemes, emphasising flexibility, get our nod.
- Transparent Pricing: We appreciate competitive interest rates that stand strong against industry averages, and it is essential that companies are upfront about all costs, leaving no room for hidden charges.
- Customer Care: Round-the-clock support, swift response times, and valuable online resources (including tools like equity release calculators) are indicators of top-notch service.
- Industry Integrity: We prioritise companies that strictly adhere to recognised industry standards and ethical codes.
- Peer and Industry Insights: A company's reputation in the broader industry landscape, as well as peer feedback, holds weight in our considerations.
- Modern Tech and Innovation: A company that offers a smooth digital application experience showcases its commitment to tech-forward solutions.
- Client Voices: We listen to both – the positive experiences shared by clients and how efficiently a company addresses and resolves concerns.
Nationwide's Base of Operations
Located in Swindon, England, Nationwide’s primary office address is:
Nationwide House, Pipers Way, Swindon, SN38 1NW.
It also operates 618 branches across the UK and administration centres in Northampton and Bournemouth.
Is Nationwide Regulated?
Yes, Nationwide is regulated by the following bodies:
- Financial Conduct Authority (FCA)
- Prudential Regulation Authority (PRO)
It is also a member of the Equity Release Council (ERC).
Financial Conduct Authority (FCA)
It is one of nearly 50,000 businesses in the UK regulated by the Financial Conduct Authority (FCA)⁶ to ensure good conduct by the financial services sector.
According to the FCA's records, the firm is registered as Nationwide Building Society.
It is permitted to provide financial services for banking, consumer credit, insurance, pensions, investments, as well as mortgages and home finance.
Prudential Regulation Authority (PRA)
Nationwide is also a member of the Prudential Regulation Authority (PRA),7 which forms part of the Bank of England and is responsible for supervising financial service providers to ensure products are offered safely and soundly.
Equity Release Council (ERC)
Even though it is not offering equity release to new customers, it is still a member of the Equity Release Council (ERC),8 and adheres to the industry body’s strict code of conduct to safeguard its existing consumers.
Read More: Who is Still a Member of the Equity Release Company?
How to Contact Nationwide and Give Feedback
You can contact Nationwide via its contact us page.
Also, you can give feedback by using its online feedback form.
Common Questions
What Are the Pros and Cons of Nationwide Equity Release
How Does Nationwide Equity Release Work
Is Nationwide Equity Release a Good Option for Seniors
What Are the Interest Rates for Nationwide Equity Release
What Are the Customer Reviews for Nationwide Equity Release
How Does Nationwide Compare to Other Equity Release Providers in the UK
Are There Any Alternative Solutions for Homeowners Looking for Equity Release Through Nationwide
Can Existing Customers Transfer Their Equity Release Plans to Another Provider
Is There Any Possibility of Nationwide Re-Entering the Equity Release Market in the Future
Are There Special Provisions for Nationwide Equity Release Customers Facing Financial Difficulties
Conclusion
While the building society may have stepped back from equity release in 2022, its historical impact and potential future decisions remain relevant for many homeowners.
It is crucial for anyone considering equity release to stay informed and consult professionals to ensure they make decisions that fit their financial landscape.
If you are keen to explore further or need tailored advice on the topic, do not hesitate to reach out to an independent financial advisor, who can guide you through every intricacy of Nationwide equity release and more.