Nationwide Save-to-Buy

mattjell

Hi all,
Advice needed! Am currently saving for a mortgage with my girlfriend. Nationwide are advertising this scheme by which you open a savings account with them (not a great percentage) and then apply for a mortgage with them. It allows you to apply for a 5% - 15% deposit mortgage.

I anticipate that we will be able to save a 15% deposit and therefore am wondering whether this account is worth it? As far as I can see, the cashback benefit is a plus and also the fact that they will offer mortgage rates that are available to current customers.

My concern is that I will be tied into a mortgage that may not necessarily have the best rates when I come to get the mortgage. I also have a very good credit history and so can not see a reason why I would have a problem getting a mortgage from elsewhere as we are also both teachers and therefore in stable jobs.

Any advice?

:beer:

Thrugelmir

mattjell wrote: »

so can not see a reason why I would have a problem getting a mortgage from elsewhere as we are also both teachers and therefore in stable jobs.

A growing trend in years to come, Could be a preference given to customers that save with an institution. As its these regular savings that fund another persons mortgage.

In the past this was the case. The financial clock is winding backwards .........

dggar

Thrugelmir wrote: »

A growing trend in years to come, Could be a preference given to customers that save with an institution. As its these regular savings that fund another persons mortgage.

In the past this was the case. The financial clock is winding backwards .........

when I took out a mortgage to buy my house 30 odd years ago it was always assumed that you would start a savings account with the Building Society you hoped to borrow from.

londoner1998

mattjell wrote: »

Hi all,
Advice needed! Am currently saving for a mortgage with my girlfriend. Nationwide are advertising this scheme by which you open a savings account with them (not a great percentage) and then apply for a mortgage with them. It allows you to apply for a 5% - 15% deposit mortgage.

I anticipate that we will be able to save a 15% deposit and therefore am wondering whether this account is worth it? As far as I can see, the cashback benefit is a plus and also the fact that they will offer mortgage rates that are available to current customers.

My concern is that I will be tied into a mortgage that may not necessarily have the best rates when I come to get the mortgage. I also have a very good credit history and so can not see a reason why I would have a problem getting a mortgage from elsewhere as we are also both teachers and therefore in stable jobs.

Any advice?

:beer:

hello

my partner and I opened tis account with Nationwide when it came out in May. I don't think you have to take out the mortgage with them, it is just that you will be able to be assessed on those conditions and having built a bit of a relationship with them through the save to Buy, you will be able to take advantage of the cashback offer and get a slightly preferential treatment ( ie, 5-15% deposit) . It is not guaranteed you get the mortgage, but I can't see what's not to like... I think it is a avery good incentive to save with them and there is no tie-in...if you find a better deal elsewhere, nothing stops you from going away...
I must say, this Save to Buy got even my very relunctant to save partner to get more serious about finances...