Nationwide is extending its Save to Buy scheme for first-time buyers to home movers on 4 January.
The scheme can be used to help with moving costs and gives existing homeowners an opportunity to borrow 9% of the value of their next home.
Save to Buy was initially launched in May last year for first-time buyers and, since then, over 25,000 savings accounts have been opened. Customers who save at least £50 a month in the account for six months can get access to a Save to Buy mortgage with a 5% deposit and have the opportunity to earn up to £1,000 cashback. To date, the mutual has paid out more than £1 million in cashback.
The savings element
Save to Buy for home movers is a regular savings account paying2% gross p.a./AER. Customers have the choice of two account options:
- Save to Buy ISA – a tax-free cash ISA that allows unlimited 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 £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.
| Amount saved | Cashback reward |
|---|---|
| £2,500 – £4,999 | £250 |
| £5,000 – £9,999 | £500 |
| £10,000+ | £1,000 |
The mortgage element
Home movers, saving for a minimum of six months, will be eligible to apply for a Nationwide fixed rate mortgage of between 85% and 95% LTV.
Tracie Pearce, Nationwide’s head of mortgages, said: “Building on the success of our Save to Buy scheme for first-time buyers, we are now extending the eligibility of the product to help home movers. It means those with a small deposit could be helped to move up the property ladder.
“The cost of selling a home, as well as buying a home, can be substantial. It is why we are offering customers, who take out a Save to Buy mortgage with the Society, up to £1,000 cashback.
“Save to Buy for home movers gives borrowers the assistance they need to buy their next home. And helping borrowers move up the property chain can help free up homes lower down the chain for those borrowers looking to get on the first rung of the ladder.”
