nationwide first time buyer savings

geordie28

morning folks

im currently saving up for my first property. i am aiming to save up around £12,000. In 18 months time i hope that i will be able to find a flat for me that i can buy for around £72,000. there are smaller flats around i could get but i intend to get a lodger to give me extra disposable income. my annual salary is £19000. anyhow i currently have £1285 saved up in premium bonds and was going to continue putting away £600 per month (in premium bonds due to rubbish interest rates). nationwide have launched a first time buyer savings account to help buyers get a 95% mortgage. i want at least a 10% deposit. If i save up £10,000 they will give me £1000 cash back. i think the catch is i would need to take out a mortgage with them. im trying to think of all the pro's and cons of going with nationwide i.e i dont know how much the mortgage will cost in terms of lenders fee, set up fee etc so in the end it might not be worth it if the £1000 will evaporate - but what have i got to lose - this £1000 shortens my saving time by 2 months. has anyone got any advice?

i also have a very good credit rating - i have always had credit since i was 18 and im now30. paid off loans and credit cards getting £16000 down to nil in 30 months without missing any payments so this should help me when applying

thanks in advance for any advice

powerwin

Whilst cash back might sound like a great concept, in reality, there may be other providers that will overall offer a cheaper mortgage, particularly over the long term, so don't let things like cash back cloud your judgement, and keep looking around. The direct mortgage providers are likely to provide some of the best deals available, e.g. First Direct, and would be worth looking at IMO.

This is not professional advice ...

Rgds

geordie28

yeah thanks for that. i certainly wont be going with them just for the £1000. i will be looking at the whole of the market when it comes to the right time and getting the best deal outright. its just the thought of ploughing £10000 - £11000 into nationwide as savings with the outcome being either £1000 and a competitive mortgage or a mortgage elsewhere with very little return on savings. i guess all im trying to do is decide if i should just go with the nationwide savings ready for the possibility of having no return on savings

Yorkie1

Have you looked at the Santander savings account for first time buyers? I know the company is pants but I seem to recall that it offered a half-way decent account. You're the right age and I think the only commitment is a meeting with their mortgage advisor.