Nationwide's Save to Buy Account/Mortgage

BoracicLint

TastyTeeth wrote: »

:j:j We received our mortgage offer from the Nationwide today :j:j

Just under 3 weeks from application. Would have been quicker, but a system bug from Nationwide stopped our offer being auto-generated. The service I've received from DiP through to offer has been very good including troubleshooting the system issue.

This offer closes off a plan I set in motion just over 3 years ago to get back onto the housing ladder and repairing my credit worthiness after a very dark financial period. I've used credit very wisely (and carefully) to build my credit history and opened the Save to Buy account as part of this.

This site has also been a fantastic resource of knowledge. Couldn't have done it without the help and advise offered in here and the credit threads.

I'm over the moon and can't wait to complete on the purchase now towards the end of November :beer:

Congratulations! Just in time for Christmas. Hope completion goes without a hitch.

Just to add, regarding the cashback... I received a cheque last week from Nationwide after completing my Save to Buy mortgage. This was approximately 3 weeks after completion, so with any luck you may get yours before Christmas.

Carrotline

Hello guys,

It's my first post in the forum, but I've been keeping tabs on this thread for some time as I've been contemplating applying for a Save To Buy savings account for a while.

I finally did it today, and had my application approved (whoop!), but I need some advice.

The person who signed me was REALLY keen for me to switch my current account to Nationwide from my current bank at the same time, claiming it will make applying for my 95 per cent mortgage a lot easier.

This is because Nationwide will know exactly how well I can manage my money that way, and they might also be able to give me a preferential rate on my mortgage when I'm ready to apply.

As it goes, I'm more than happy with the current account setup I have, and would rather not switch because of the hassle (I reckon it involves) but if it makes it easier for me to get a mortgage in the long run, it must be worth considering, right?

They've booked me in to have a chat with someone about all this in a couple of weeks, but what do you reckon?

Has anyone on here applied for a Save To Buy mortgage and been successful while holding a current account with another bank? My ISA/savings accounts are all held at other banks, too. Could this count against me?

Or is this the line Nationwide trots out to everyone so they don't just sign up for Save To Buy and then b*gger off once they get the mortgage deal they want?

Thoughts?

Thrugelmir

Carrotline wrote: »

Thoughts?

If your lender is a bank. Then highly possible that using the bank as your main current account may carry advantages. If not now but in the future.

Lenders do have limited funds so may well give priority to those that save and bank with them.

In no way I am suggesting that you have to. Ultimately is your choice.

BoracicLint

Welcome to the forum Carrotline,

When I applied for my save to buy account I too was given the hard sell to get a flex current account as well. There are a couple of very good reasons to do so.

Firstly, there are a number of mortgage products available at 95% that are only available to you if you hold a flex account, and fund the minimum £750 per month.

The other thing to consider is how Nationwide will look at your current account to assess your money management habits. I basically opened a flex account and transferred £750 per month into it before depositing most of those funds into the save to buy. I still maintained my main account with another bank, but by paying £750 per month into the Nationwide account, they were able to treat this as my main account so no statements were required from me.

Had I not taken a current account with them, my application may have looked less favourable if they had requested bank statements from my other current account.

TastyTeeth

I can only speak from experience.

I didn't move my current account over until 4 months before application. I'd been with another bank for over 20 years, so had some reservations, but the account move happened smoothly and without hitch. I also moved an ISA across and applied (and was accepted for) for a credit card.

I do believe that this made the final mortgage application much smoother. No statements were required and a credit history was available to help a final decision to be made with full visibility. Made the application process much easier for me.

Truthfully, I don't know if it will make a difference. But it will make things easier.

Carrotline

BoracicLint wrote: »

I basically opened a flex account and transferred £750 per month into it before depositing most of those funds into the save to buy. I still maintained my main account with another bank, but by paying £750 per month into the Nationwide account, they were able to treat this as my main account so no statements were required from me.

Had I not taken a current account with them, my application may have looked less favourable if they had requested bank statements from my other current account.

Thanks for the warm welcome and the prompt responses

I was thinking about doing something similar earlier today. Keep my current account where it is, and use that to receive my wages each month and pay out on my direct debits (car insurance/phone bill, etc), so I wouldn't have to rearrange too much stuff.

But, then transfer some money over (say £750) to Nationwide and use that account to pay for my commuting, weekly shop, other running costs, etc, just so I can build up some kind of track record with them.

My only reservation with that plan is, would they think just because I'm paying in £750 a month, that's all I earn?

Apologies if that's a dense question, but all this mortgage stuff is new to me and I've dealt with the same bank for years and years.

BoracicLint

That's exactly what I did, just show a bit of activity on the account and keep up the minimum deposits and you'll be fine.

Dont worry about this deposit falsely representing your earnings, your proof of income (payslips, or accounts etc..) are the only thing that proves your income, and that is all they will consider when calculating your affordability for a mortgage.

You are not obliged to tell them what other accounts you have, unless they ask you to disclose it at the application stage, which they don't.

It just makes everything a lot simpler, and one less piece of evidence you need to provide when it comes to the application. I don't know how my application would have faired if they asked for statements from my other account, there was certainly a few things that may have flagged up such as the use of my overdraft. Having an account with Nationwide simply removed that risk, and made me look like a shining example of a low risk customer!

TastyTeeth

Is moving your banking to another provider really that daunting? Transparency will make things easier. The Save to Buy account will make getting on the housing market easier. Nationwide will not be any worse than your current bank.

Take the plunge and enjoy the adventure. Trying to manage and juggle between two bank accounts sounds like a hassle. I didn't move until 4 months before application so there's no rush at this stage given you have to hold the Save to Buy account for a minimum of 6 months before any application.

Carrotline

TastyTeeth wrote: »

Is moving your banking to another provider really that daunting? Transparency will make things easier. The Save to Buy account will make getting on the housing market easier. Nationwide will not be any worse than your current bank.

I suppose. I think I was just taken aback when they mentioned it today, as it's not something I've had any reason to consider before.

Maybe I'll leave things as they are for now, as my ISA and current account are with the same bank at the moment, which makes moving money between them really easy and then revisit this in a couple of months when I'm a bit closer to needing the mortgage.

How complicated is it to switch your current account, and set up your direct debits, etc, again? That's the thing that elicits the biggest groan from me about all this.

TastyTeeth

Carrotline wrote: »

I suppose. I think I was just taken aback when they mentioned it today, as it's not something I've had any reason to consider before.

Maybe I'll leave things as they are for now, as my ISA and current account are with the same bank at the moment, which makes moving money between them really easy and then revisit this in a couple of months when I'm a bit closer to needing the mortgage.

How complicated is it to switch your current account, and set up your direct debits, etc, again? That's the thing that elicits the biggest groan from me about all this.

You won't do anything other than apply for the current account. All DD's/SO's are ported over a 2-3 week period for you and you'll get text messages along the way to advise you of the current status of the setup.

I timed the account change just after a payday to ensure the maximum time for transferring things. I didn't miss a payment and things went smoothly. Anyone I pay by direct debit wrote and confirmed the change to payment details as well.