Nationwide launch 5% deposit mortgage scheme

The Nationwide Building Society has launched a new regular savings account that gives first-time buyers access to their mortgages with a 5% deposit.

Save to Buy offers an interest rate of 2.5% on savings of up to £20,000 and a minimum of £50 must be put in to the savings account each month. Nationwide will also give cash back of up to £1,000 if customers take out a 95% loan-to-value mortgage with the lender.

First-time buyers must have been saving into their Save to Buy account for six months before they are eligible to apply for one of Nationwide's 95% mortgages. The main catch with the mortgage is that homebuyers are not guaranteed to be offered a mortgage after six months, although they can be credit scored to see if they are likely to qualify.

The National Counties Building Society still offers their “family first guarantor mortgage” and it is available up to 95% loan to value. The rate is fixed at 4.99% until the 30/11/2013 and the mortgage is subject to a second charge being put on a family members property.

May 10, 2011