Over 5,500 customers have so far bought a home with Nationwide’s Save to Buy scheme, which has just reached its third anniversary.
The scheme enables both first time buyers and home movers to save towards a mortgage deposit for between six months and three years through a savings account or ISA. They can then apply for a home loan with just a 5% deposit.
More than 62,000 accounts have been opened since the launch in 2011, with the average savings or ISA account balance being £4,233. It has put thousands of potential home buyers on or up the housing ladder since the launch in May 2011.
The most popular choice of mortgage taken out by Save to Buy customers is a Nationwide four year Flexclusive fixed rate mortgage, with an average deposit of 8%. The average loan size is £147,828.
Save to Buy was originally launched to help first time buyers, but in January 2013 Nationwide widened the scheme to include home movers as well.
With Save to Buy, savings accounts can be opened with a minimum of £50, with customers saving for at least £50 per month for six months or more. First time buyers and home movers will then be eligible to apply for a Nationwide fixed rate mortgage. If the customer goes on to take a Save to Buy mortgage, depending on how much they save, there is also a cashback reward of up to £1,000.
Tracie Pearce, head of group mortgages at Nationwide, said: “Save to Buy has proved to be a success story for those customers looking to begin their journey to home ownership or to take the next step. In the last three years, we have helped thousands of customers aiming to move onto or up the housing ladder and Save to Buy is continuing to help tens of thousands of aspiring home buyers.
“Save to Buy was designed to benefit those customers who were able to demonstrate a history of saving, giving them an improved chance of obtaining a mortgage. It demonstrates that good saving habits and strong credit quality appear to go hand in hand.
“With issues of affordability of increasing importance, Save to Buy is providing the means for many customers to begin, and complete, the journey towards a home of their own.”
