Nationwide encourages saving

Nationwide has announced that it will reward first time buyers for saving their deposit with them.

In a move likely to be welcomed by those seeking the best savings interest rates to help build up their home deposit, the building society has offered a competitive rate of 2.5 per cent.

Furthermore, the firm will even give savers cash back of five per cent if they then choose to take advantage of Nationwide's competitive range of mortgage rates.

The savings account encourages first time buyers to build up bigger deposits, as the more they save, the more cash back they will receive.

Cash back is even available on the building society's new 95 per cent LTV morgage.

Martyn Dyson, Nationwide's head of mortgages, said: "With Save to Buy, they can save a deposit with a competitive interest rate and then have access to a five per cent deposit mortgage, meaning their first home could be a closer reality than they might think."

The announcement comes as the Building Societies Association revealed that mortgage approvals jumped up 29 per cent in March compared to the previous year.

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2011-05-04 13:34:49 © Moneyextra.com