Skipton Building Society has launched a new range of first-time buyer products to help more people “get on the property ladder”.
The products include a suite of new mortgage deals and £1,500 cashback products, all packaged with “supportive” home-buying extras.
Skipton has also launched a new first-time buyer savings account within the range, which pays 5.06 percent interest.
The new first-time buyer range, which is available from Tuesday, July 23, has been “specifically designed” to support first-time buyers by helping them save and “alleviating” some of the upfront costs of getting onto the property ladder.
The launch comes following results from the Skipton Group’s new Home Affordability Index, which revealed the stark reality of securing a home in Great Britain today.
The Index, created in partnership with Oxford Economics, found only one in eight potential first-time buyers in Great Britain can purchase the average first-time buyer property in their area. This falls to just one in 100 for those earning £22,850 or less.
Meanwhile, almost 80 percent of potential first-time buyers have “insufficient” savings for the deposit needed to get onto the property ladder in their area.
Charlotte Harrison, CEO of home financing at Skipton Building Society commented: “Everyone should have somewhere to call home, but achieving that today is an insurmountable struggle for far too many.
“And a clear picture has emerged from Skipton Group’s Home Affordability Index showing the enormous struggle facing renters and first-time buyers across the country, with only one in eight potential first-time buyers in Great Britain being able to purchase the average first-time buyer property in their area.
“The challenge for first-time buyers in particular is urgent, and while it demands coordinated innovation and collaboration, we at Skipton want to do our bit.
“We know it’s all very well highlighting key housing issues, but this doesn’t help anyone if you don’t spend time exploring and investing in the solutions. Which is why I’m pleased to announce our new range of first-time buyer products, to help get more first-time buyers onto the property ladder.”
Skipton Building Society’s exclusive first-time buyer product range includes:
New cashback mortgages
- Five-Year Fixed Rate Mortgage – 5.89 percent up to 95 percent LTV with £0 fee and £1,500 cashback.
New mortgages without cashback:
- Two-Year Fixed Rate Mortgage – 6.09 percent, up to 90 percent LTV with £0 fee
- Five-Year Fixed Rate Mortgage – 5.69 percent, up to 95 percent LTV with £0 fee.
All of the mortgage products are packaged with a suite of extras, which include:
- An Income Booster Option
- Free valuation (for mortgage purposes only)
- Discounted level two and three surveys
- Mortgage terms of up to 40 years available
- Loan to income ratio of up to 5.5x loan to income
Meanwhile, details of the mutual’s Home Deposit savings account include:
- Variable interest rate paying 5.06 percent
- £500 per month deposit (this can be rolled over if a month is missed)
- Two Year term with a maximum balance of £12,000
- No withdrawals, but closures are allowed
- Open to all customers with no member restriction
- One account per customer.
