Skipton Building Society has launched a new range of new products, including mortgages and a savings account paying 5.06%.
This new offer from the lender that the 100% ‘Track Record’ mortgage for startersis intended to help potential buyers better prepare for their home ownership journey.
The new range of new mortgages includes a five-year fixed rate with £1,500 cashback. This has a rate of 5.89% and is available to those who need to borrow up to 95% of the value of their property – 95% loan to value (LTV).
There is also a two-year fixed rate of 6.09% for those who need to borrow at a 90% LTV and a five-year fixed rate of 5.69% for those with a 95% LTV borrowing requirement. These do not come with cashback, but are free.
All mortgages come with extras such as an income boosting option, free valuation (for mortgage purposes only) and a discount on Level 2 and 3 surveys. Mortgage terms of up to 40 years are available and the loan amount is calculated based on 5.5 times your income.
The savings account allows first-time buyers to pay up to £500 per month (which can be paid out over a month) for a period of two years.
No withdrawals are allowed during this period and the interest rate is variable, meaning it can be changed at any time. There is a maximum balance of € 12,000.
These new products, which will be launched on Tuesday, July 23, come after Skipton uncovered statistics that highlight the reality of securing a home in Britain today.
The research shows that only one in eight potential starters can buy the average property in their region. This is just one in 100 for those earning £22,850 or less.
Almost 80% of potential starters do not have enough savings for the deposit required to get on the property ladder in their area.
Additionally, four in ten renters spend 45% or more of their income on essential housing costs, which is a major barrier to saving for a down payment.
Charlotte Harrison, CEO of Home Financing at Skipton Building Society said: “Everyone should have a place they can call home, but achieving that today is an insurmountable battle for far too many people.
“And today a clear picture has emerged from Skipton Group’s Home Affordability Index, which shows the enormous struggle renters and first-time buyers face across the country, with just one in eight potential first-time buyers in Britain in has been able to buy the average price. starter homes in their region.
“The challenge is particularly urgent for start-ups, and while it requires coordinated innovation and collaboration, we at Skipton want to do our part.
“We know it all very well highlights the key housing issues, but this won’t help anyone if you don’t spend time researching and investing in the solutions. That’s why today I’m pleased to announce our new range of products for first-time buyers, to help get more first-time buyers onto the property ladder.”