All of Nationwide’s 95 per cent loan-to-value Save-to-Buy rates have been reduced by up to 0.7 per cent.
With Save-to-Buy, savings accounts can be opened with a minimum of £50, with customers saving at least £50 per month for six months or more.
First-time buyers and home movers will then be eligible to apply for a Nationwide fixed-rate mortgage.
If the customer goes on to take a Save-to-Buy mortgage, depending on how much they save, there is also a cashback reward of up to £1,000.
The new rates for the 95 per cent LTV deals are; a two-year fixed rate of 4.79 per cent; three-year fixed rate is 5.19 per cent; and a five-year fixed rate of 5.39 per cent.
Existing mortgage customers benefit from an additional 0.1 per cent discount on the new customer rates.
In addition to the Save-to-Buy changes, the 95 per cent LTV five-year fixed-rate deals for existing borrowers will be reduced by 0.5 per cent, with a rate of 5.49 per cent with a £999 fee or 5.69 per cent with no fee.
David Hollingworth, associate director at London & Country Mortgages, said: “Save-to-Buy rates were launched by Nationwide when there were few mortgage deals available to those with only a small deposit. The Help-to-Buy guarantee has helped to expand that side of the market substantially, so it’s good to see that Nationwide has recognised there’s scope to improve its 95 per cent LTV rates.
“The rates now stand up very well to those available in the wider market. HSBC offers a HTB guarantee-backed two-year fix at 4.79 per cent to 95 per cent LTV with just a £99 fee. It also has a five-year rate at 5.29 per cent with a £99 fee. The Post Office offers a good three-year fix at 5.19 per cent with no arrangement fee.”
