The main conditions of this scheme is that customers have to save at least £50 per month, with the potential to get £1,000 cash-back.
Now the building society is extending its Save to Buy mortgages to homeowners in order to free up homes for those wanting to get on the property ladder.
From 4 January homeowners who sign up to the deal can choose to pay into a tax-free Save to Buy Isa or a Save to Buy account, both paying interest at 2% AER on balances up to £20,000. They must pay in at least £50 a month, but can take three months off during a rolling 12-month period.
Once they have enough money for a 5% deposit, they can access four fixed-rate mortgages: a three-year 5.69% fixed-rate with a £900 fee, a three-year 5.99% fixed-rate with no fee, a five-year 5.99% fixed-rate with a £900 fee or a fee-free five-year fixed-rate at 6.19%. Two two-year deals are available at a 90% loan-to-value ratio.
Tracie Pearce, Nationwide's head of mortgages, said:
"Save to Buy for home movers gives borrowers the assistance they need to buy their next home. And helping borrowers move up the property chain can help free up homes lower down the chain for those borrowers looking to get on the first rung of the ladder."
Many experts have praised the move, pointing out that it was not just first-time buyers who were struggling.
Mark Harris, the chief executive of mortgage broker SPF Private Clients, said:
"The trapped second-steppers, who are already in a property but want to move up the ladder to a larger one, are finding that falling property values mean they don't have substantial equity to call upon. The cost of moving, in particular paying stamp duty, can make it very difficult to get together the necessary funds when the high cost of living makes saving tricky."
However, Harris advised borrowers not to assume the Nationwide loan was the most competitive for their circumstances.
"Borrowers should ensure they compare what is on offer with the rest of the market and not assume they are getting the best deal," he said.
