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Nationwide lends £1bn to Save to Buy customers

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
09/03/2017

Nationwide’s scheme which enables savers to access mortgages at 95% loan to value has attracted more than £1bn so far.

The building society scheme was launched in May 2011 and has attracted more than 90,000 customers in the last four years.

The scheme allows would-be borrowers to save a deposit in a savings account with a favourable rate then apply for a mortgage with a 5% deposit.

Although originally intended for first-time buyers, the scheme was opened up to home movers two years ago.

Approximately £1.1bn has been loaned to both first-time buyers and home movers, the mutual confirmed. More than 8,000 homes have been purchased using these loans.

For first-time buyers taking advantage of the scheme the average deposit was £13,900. Using this they were able to but a property worth £145,000.

On average, Save to Buy first time buyers are aged 30 while home movers are 32.

Andrew Baddeley-Chappell, Nationwide’s head of policy for mortgages and savings, said: “Save to Buy helps Nationwide mortgage applicants to demonstrate how good saving habits and strong credit quality go hand in hand.

“Many people do not have the bank of mum and dad to depend upon. We have focussed our support on those who prudently plan ahead, save regularly and think about what they might need to apply successfully for a mortgage before finding a home.

“Save to Buy helps mortgage applicants demonstrate good saving habits, money management and planning. Through this approach, we have helped our customers to help themselves to access low deposit mortgages and cashbacks to help with the costs of moving home.”


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