First-time buyers offered lift

10/05/2011

First-time buyers signing up to save with Nationwide could get their hands on a 95 per cent mortgage, it has been announced.

Under the Save to Buy scheme the building society offers buyers higher loan-to-value mortgages provided they open a tailored account which enables them to save for a deposit.

Buyers signing-up for the scheme will be offered a 2.5 per cent interest rate on balances up to £20,000.

To qualify for the mortgage savers must pay at least £50 into the account each month for three quarters of the year - with a minimum saving period of six months.

Savers who go on to take out a 95 per cent mortgage can also benefit from a cashback reward of up to £1,000.

Nationwide head of mortgages Martyn Dyson said: "We've listened to our customers and we know there is a need for mortgages with a 5 per cent deposit for first-time buyers which aren't widely available in the market."

The product will be launched on Friday, news which could interest people hoping to get on the housing ladder and sign up for home insurance policies in the future.