Clydesdale and Yorkshire Banks remain one of few lenders committed to boosting the first time buyer market, with their competitive 95% loan-to-value mortgage*.
New research from the Bank’s lending figures has revealed that the average house price for new homeowners with 95% LTV mortgages for the first half of 2011 was £97,650* meaning buyers would need to save a deposit of just less than £5,000.
The mortgage is fixed for three years at an initial rate of 6.19% before moving to the standard variable rate after this period. There is an arrangement fee of £599 and the bank will pay for one home valuation*.
For example, a customer taking out a Clydesdale or Yorkshire Bank first time buyer 95% LTV mortgage of £100,000 over 25 years with a 5% deposit would pay £655.97 per month. This is fixed for three years.
The Bank is also supporting customers with their Regular Homesaver Account* which provides a simple way to save monthly towards a deposit on a first home, with the flexibility to vary payments during the term and the added bonus of up to £1,000 cashback** when taking a Clydesdale or Yorkshire Bank First Time Buyer (FTB) mortgage.
For a deposit of £5,000 the potential homeowner would need to put away £209 every month for two years to save the necessary deposit.
The account was launched in April 2011 and has already seen strong take up with most prospective homeowners keen to put away more than the £200 minimum required.
In the five months from April to August 2011, 35% of those who have opened an account are joint applicants compared to 65% who are holding an account on their own. The average balance for joint account holders is in the region of £1,800 - £2,100 compared to £2,500 - £2,800 for sole account holders.
Steve Reid, Retail Director for Clydesdale Bank, said: “We appreciate how difficult it can be for first time buyers to secure a mortgage which is why we remain committed to supporting the first time buyers market with a range of competitive mortgage products.
“In addition to our 95% LTV mortgage, we also offer support to customers throughout the whole buying process with our Regular Home Saver account, which helps them build a deposit and get a foot on the housing ladder.”
For more information on the mortgage products offered by Clydesdale and Yorkshire Banks, please contact 0800 678 1230 for Clydesdale Bank or 0800 678 3380 for Yorkshire Bank (opening hours 8am – 8pm Mon-Fri) or visit www.cbonline.co.uk or www.ybonline.co.uk.
* This is based on FTB 95% LTV approvals for the period of January to June 2011
** Terms and conditions apply