Nationwide Account Help

Shortehhh

Hi Everybody!

I hope you do not mind me posting but I could do with some help please as I have recently been accepted for a mortgage and I was wondering what should I do because I have read a thread on here somewhere saying do not use a Save to Buy FTB Issue 3 but I have that (Which holds the most of my deposit) and then my Help to Buy ISA (I had to get this as I said previously the Save to Buy no longer exists). I am not sure what to do? If anyone can shed any light on this matter I'd appreciate it a lot.

Thank you for taking your time out to read my thread

Hayley

Alexland

I thought I would bump this for you. I am not entirely sure what the problem is you are referring to so cannot answer. I assume all these products are with Nationwide and you talked you plan through with their mortgage advisor?

Shortehhh

To be honest I have gone through a private mortgage broker but my worries are my solicitor who I am using requires me to use all my money I saved up to go towards the house when I only wish to put 10% down so would he get say all my Help to Buy money and the bonus then if needed use my other savings yo get the 10% as my Help To Buy hasn't got as much as the Save to Buy if you get me? And whatever is leftover after the 10% deposit surely is mine right?

Sorry to be a pain lol!

bowlhead99

Make sure you have put as much into the Help to Buy as you can (£200 each month) because there's a free bonus from the government for using those funds.

The solicitor will step you through the process of using the HTB bonus for the house but in order to get the bonus you can only use the money when you are definitely completing on the house (i.e. the money you pay on completion of contracts, not when you pay the first deposit at exchange). If you only really want to pay 10% total deposit and borrow 90%, and the seller of the house won't accept anything less than 10% at exchange of contracts and you can't negotiate them down a bit, then you might end up paying a bit more than 10% deposit total, because of not using the HTB bonus money until completion and it not being able to form part of your deposit at exchange.

But most people are OK with that because it's free money they'd otherwise miss out on getting, and it leaves them with a lower mortgage than they'd otherwise get if they didn't use all the HTB bonus.

The Save to Buy account is a Nationwide only account which is useful to get some free cashback if you are taking out one of their special 'save to buy' mortgages. The mortgages allow you to borrow up to 95% but if you're borrowing 95% you'll be at a higher interest rate than if you only really need to borrow 90%. Their 'save to buy' scheme was useful for certain types of first time buyers when they first introduced it and when the government-sponsored help to buy wasn't around; I had a STB accoount with them a few years ago but never bothered using it for the purchase in the end - as I only needed an 85% mortgage so went for one of their other deals and just closed the account to put it towards the rest of my savings.

With the save to buy account you can't withdraw just a bit of it, you have to either close it and take the cash out, or keep it all in there. Assuming your broker is not recommending you get a special Save to Buy mortgage from nationwide, I'd just close the account and take the cash out of it and use however much of it you want for your property and the rest for general savings and moving costs etc. Meanwhile the HTB account, I would use all of that for the property purchase as if you don't you'll miss out on free government bonus.