Nationwide slashes ‘Save to Buy’ rates

Its 5-year fix has been reduced 0.70% to 5.39%, while its 2-year and 3-year fixes have both been reduced by 0.20% to 4.79% and 5.19%.

To be eligible for the Save to Buy products customers must open a savings account with at least £50 before saving an additional £50 per month for half a year.

Products come with a £999 fee, although this is reduced to £499 for first-time buyers.

Richard Napier, Nationwide’s divisional director of mortgages and savings, said: “With issues of affordability of increasing importance, we are aiming to help aspiring homebuyers with smaller deposits to have the means to secure a home of their own.

“With Nationwide’s established Save to Buy scheme, customers who have demonstrated a history of saving are being given the opportunity to access very competitive mortgage rates.

“This shows that good savings habits and strong credit quality go hand in hand.”

Under Save to Buy depending on how much they save customers can gain up to £1,000 cashback.

In addition to the Save to Buy changes, 95% LTV 5-year fixes for existing borrowers have been reduced by 0.50%, with rates of 5.49% with a £999 fee and 5.69% with no fee.

Nationwide has also reduced its 2-year fix at 85% LTV to 3.29%, while it has also lowered its 2-year 85% LTV tracker to 2.69% with a £999 fee.

Existing mortgage customers can benefit from an additional 0.10% discount on the new rates.