30 April 2013
Nationwide Building Society is helping tens of thousands of aspiring home buyers move a step closer to buying a property of their own through its Save to Buy scheme.
A total of 1,715 customers have so far bought a home with Nationwide’s Save to Buy scheme, which marks its second anniversary this week.
The scheme enables customers to save towards a mortgage deposit for between six months and three years. They can then apply for a home loan with just a 5 per cent deposit.
But a total of 29,623 Save to Buy accounts have been opened since launch, with the average account balance being £3,270. It means thousands more potential home buyers are on their way onto, or up, the property ladder.
The most popular choice of mortgage taken out by Save to Buy customers is a four year fix, with an average deposit of 7 per cent deposit. The average loan size is £137,000.
Save to Buy was originally launched to help first time buyers, but earlier this year Nationwide extended the scheme to home movers.
Tracie Pearce, head of group mortgages at Nationwide, said: "In the past two years since we first launched the Save to Buy scheme, we have helped thousands of customers on their journey towards home ownership.
"The scheme has proved so successful that we have extended it to those who already own their own home and are looking to take the next step up the property ladder."
Notes to editors:
Save to Buy:
The savings element
Save to Buy is a regular savings account paying a competitive rate of 2 per cent gross p.a. /AER. Customers have the choice of two account options:
- Save to Buy ISA – a tax-free cash ISA that allows deposits up to the annual cash ISA limit each tax year
- Save to Buy – an account that allows unlimited deposits up to £20,000
The accounts can be opened with just £50 and customers have to save at least £50 per month for six months or more, with the flexibility of not paying the minimum monthly amount for up to three months during a rolling 12 month period. If the customer goes on to take a Save to Buy mortgage, there is also a cashback reward of up to £1,000 – and the more they save, the more cashback they receive.
£2,500 - £4,999
£5,000 - £9,999
The mortgage element
First time buyers and home movers, saving for a minimum of six months, will be eligible to apply for a Nationwide fixed rate mortgage of between 85.01% and 95% LTV (two year fixed rates have a maximum LTV of 90%). The extension of the Save to Buy product to home movers means borrowers with a small amount of equity have the possibility of being able to move.
Key features of the fixed and tracker mortgage product range for new applications
- Overpayments (no minimum; maximum of £500 per month on fixed and tracker mortgage deals).
- Standard Mortgage Rate
- Mortgage products reserved on or after 30 April 2009 revert to the Standard Mortgage Rate (SMR).
- The SMR is a variable rate which may vary in accordance with Nationwide’s mortgage terms and conditions.
- All mortgages reserved on or before 3 March 2010 include the option to apply for a payment holiday and borrow-back facility. Any mortgages reserved after this date will no longer include these facilities.
- If the borrower is currently letting their property they will be unable to switch to a new mortgage deal and their mortgage will automatically revert to the Nationwide variable rate as stated in their mortgage offer.
- Early repayment charges for fixed rate mortgages
Throughout the deal period, a percentage of the outstanding loan is payable as detailed below. Overpayments of up to £500 per month are permitted without the need to pay an early repayment charge.
- Two-year fixed rate mortgage: 3%
- Three-year fixed rate mortgage: 4%
- Four-year fixed rate mortgage: 4%
- Five-year fixed rate mortgage: 5%
- A £99 non-refundable booking fee may apply.
- Applications are required for all products. Further details of terms and conditions are available on request.
- Mortgages are subject to underwriting criteria.
About Nationwide Building Society
Nationwide is the world's largest building society as well as the second largest savings provider and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards, ISAs and personal loans. Nationwide has around 15 million members.
Customers can manage their finances in branch, on the telephone, internet and post. The Society has around 15,000 employees. Nationwide's head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.