95% LTV Mortgage Available to First-time Buyers with Nationwide

Starting Friday, May 6th, those willing to get on the property ladder, will be able to open a special savings account with Nationwide and get a mortgage with just 5% deposit.

The new product, Save to Buy, is a special for UK first-time buyers. They will be paid interest of 2.5% gross on balances of £20,000 or less. After saving £50 or more for 6 months, the clients of building society will be eligible to apply for one of the available 95% LTV mortgages.

Earlier, this unique option was only available to existing mortgage customers of Nationwide.

It is important to note that Nationwide is only one of a few British lenders willing to give out 95% LTV mortgages to first-time buyers on a straightforward basis.

Currently, Nationwide offers 95% LTV mortgages at 6.29% and 6.89% for 3 and 5 years accordingly.

Mortgage brokers believe that the new Save to Buy product is good for potential home buyers, but they should not be over optimistic about it because Nationwide only promises to “consider the application.”

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