The Nationwide Building Society has seen the first mortgage completion by its Help to Buy ISA savers, claiming the minimum £400 Government bonus following the scheme’s launch on 1 December 2015.
Of those customers eligible to claim after opening their accounts on 1 December, more than 40 Nationwide Help to Buy ISA savers have already closed their balance in order to claim their Government bonus, with one applicant from Northampton completing on 4 February, and another four joint applicants, from Glasgow and Derby respectively, due to complete within the next week.
Of those, one couple who have made a Nationwide Save to Buy mortgage application have been able to access the maximum total of £1,750 available to the Society’s Help to Buy ISA customers in cashbacks and bonus. This is made up of a £500 cashback available to all Nationwide first time buyers, a further £250 cashback for all Nationwide Flex main current account holders and a £1,000 cashback available to existing savers through Nationwide’s Save to Buy scheme when taking a Save to Buy mortgage.
As joint first time buyer mortgage applicants, both customers are also claiming £400 each in Help to Buy ISA bonus payments, a total of £800, making a grand total of £2,550 in cashbacks and bonuses.
In the first month of Nationwide Help to Buy account openings, the largest percentage and 55% of the first time buyer applicants were in the 25-35 age bracket, with 34% aged 18-25.
Four in five maximised the amount they could contribute to the account in the first month only, depositing £1,000-£1,200, with an average overall balance of £981. So far, a slightly higher number opened those accounts online (55%) than in branch (45%).
The top five areas for Nationwide Help to Buy ISA account openings have been Birmingham, Northampton, Reading, South West London and Bristol. It has proved most popular in the South East (22% of account openings) and Greater London (18%).
Andrew Baddeley-Chappell, Nationwide’s head of mortgages and savings policy, said: “These savvy borrowers have been quick off the mark in realising the benefits available under the scheme. Of course, those who save more and for longer can get an even larger bonus, but this first tranche of eager first time buyers shows just how quickly the benefits can flow through the scheme.
“Adding in the potential cashback from Nationwide demonstrates the significant support available to those looking to get a first foot on the housing ladder.”