Spotlight On: Nationwide's 'save to buy' account

Simon Read
Friday 06 May 2011 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The deal

Nationwide yesterday introduced an account aimed at helping first-time homebuyers to save regularly towards their deposit.

The good points

The interest rate paid at 2.5 per cent is OK but, more importantly, anyone saving in the account will need just a 5 per cent deposit to qualify for a Nationwide mortgage rather than the normal minimum 10 per cent. Save up £10,000 and you'll also qualify for cashback of £1,000.

The bad points

There's a risk that the Nationwide will not grant you a mortgage when you apply, leaving you with just a relatively poor savings account. The interest rate is not great so if you don't get the mortgage deal, you'd be better off saving elsewhere.

Conclusion

Any account that helps people save the deposit towards their first home is a good thing. Nationwide has introduced flexibility into this account so that while there's a minimum £50 deposit needed every month, you are allowed three months off. But you may be better off saving in a higher-paying account and getting a separate mortgage deal.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in