For years, families put their hard earned pounds in a bank they trust.  Following that, they never looked back.  That bank became the bank to trust when it came to investments, personal loans, and the family mortgage.  Now, Nationwide is banking, so to speak, on their new mortgage product to drum up some fresh new business.

The UK bank recently launched a new product called Save to Buy.  The mortgage product is an incentive-based account which is focused on first time buyers who save with the building society.

The new product offers new buyers the chance to get competitive mortgage loan rates, only previously available to existing customers.  The loan is available by customers only providing a 5% deposit.  The one condition of the loan is that they have to save a minimum of 50 pounds per month with Nationwide for between six months and three years.   

Martin Bamford, of Informed Choices, an independent financial adviser, commented on the loyalty exhibited by today’s banking customer, saying: "It used to be fairly common practice to have a 'bank for life', but people in this generation are more likely to switch banks when they are offered a better deal or experience bad service,"

He added: "Sticking with a bank or building society for longer periods gives them a better opportunity to understand your personal finances, including your ability to stay out of debt. Banks should be rewarding customers for loyalty; offering preferential borrowing and savings rates for long-standing customers would be a good way to do this."

The head of Nationwide’s mortgages, Martyn Dyson, commented on the new product, saying: "We've tried to make it as flexible as possible. Although the account must be funded with a minimum of £50 per month, customers can miss up to three months' payments within each 12-month period; if they get an extra cash boost, they can make a lump sum payment and build that into the account as well,"