25 July 2015
Customers to benefit from Help to Buy ISA and Society’s existing Save to Buy initiative
Nationwide Building Society will be supporting the launch of the Government’s new Help to Buy ISA on 1 December, with customers able to benefit from its existing Save to Buy initiative as well as being able to save towards the cash bonus available with the Help to Buy ISA deposit.
The Help to Buy ISA is available only to first time buyers. According to current guidelines, savers can deposit up to £1,200 in the month they open the account and a further £200 in each subsequent month.
It is designed to assist those saving for a deposit on their first home by offering a Government cash bonus according to the level of savings in the Help to Buy ISA. For every £200 maintained in a Help to Buy ISA account, £50 will be paid as a bonus at the time of purchasing a first home.
In addition, Britain’s biggest building society is the only major savings provider that currently allows its customers to choose more than one type of cash ISA product within the Nationwide ISA portfolio, which can be combined under a single Nationwide ISA wrapper, up to the annual ISA limit of £15,240. This means that Nationwide savers can keep investing in Nationwide cash ISA products, subject to limits, as well as contributing up to £200 a month to the Nationwide Help to Buy ISA.
Chris Rhodes, Nationwide Executive Director for Group Retail, said: “As one of the UK’s largest mortgage and savings providers, we feel it is important to be involved in the Help to Buy ISA scheme from day one.
“Over the last four years we have demonstrated our commitment to first time buyers by lending more than £1 billion through our low deposit Save to Buy mortgages. Our involvement in the Help to Buy ISA scheme will strengthen that support.
“Nationwide customers will now be able to benefit from the Government Help to Buy ISA bonus in addition to our Save to Buy initiative when buying their first home.”
With its existing Save to Buy initiative, which began in May 2011, Nationwide has long championed the benefits of saving towards a house deposit. More than 90,000 customers have opened Save to Buy savings accounts since launch, with more than 8,000 account holders having gone on to access a Save to Buy mortgage, designed for first time buyers with a small deposit, as well as a cashback of up to £1,000.