More than 8,000 home purchases were made through Nationwide’s Save to Buy scheme, which was launched four years ago on 6 May. The scheme, designed to help customers save up for a mortgage deposit, now includes more than 90,000 savings and individual savings accounts (ISAs) and the current average savings or ISA account balance stands at […]
More than 8,000 home purchases were made through Nationwide’s Save to Buy scheme, which was launched four years ago on 6 May.
The scheme, designed to help customers save up for a mortgage deposit, now includes more than 90,000 savings and individual savings accounts (ISAs) and the current average savings or ISA account balance stands at £5,714.
The total amount of loans advanced via the scheme has reached around £1.1 billion.
The average loan size for Save to Buy mortgage applicants is £145,000 and the average deposit stands at £13,900.
The majority of Save to Buy applicants have been first-time buyers at an average age of 30. The average age for homemovers is a bit higher, at 32.
Three-quarters of Save to Buy mortgage applications are made in joint names.
Nationwide launched Save to Buy in May 2011 exclusively for first-time buyers, but in January 2013 the lender widened the scheme to include homemovers as well.
The most popular choice of mortgage taken out by Save to Buy customers has been a Nationwide four year Flexclusive fixed-rate mortgage, with an average deposit of 8 per cent. Two-thirds of all Save to Buy loans are made at up between 90 and 95 per cent loan-to-value (LTV).
With Save to Buy, savings accounts can be opened with a minimum of £50, with customers saving at least £50 per month for six months or more. First-time buyers and homemovers are then 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.
Andrew Baddeley-Chappell, Nationwide’s head mortgage policy and savings, said:
“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.”
