Clydesdale and Yorkshire Banks are today (Wednesday 6th April) launching a new savings account to help First Time Buyers build a deposit and get a foot on the housing ladder.
Regular Home Saver 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. (See product details)
The average UK First Time Buyer property costs an estimated £121,717* meaning a 5% deposit would be £6,085. Saving around £200 each month for two and a half years would achieve this target.
Clydesdale and Yorkshire Banks are part of just a handful of mortgage providers that offer 95% LTV loans to First Time Buyers, so are well placed to support and guide them through the entire home-buying process; from saving through to purchase.
With First Time Buyer numbers close to an all time low; 10,500 First Time Buyer purchases in January this year (source CML), many relying on parental support, and the added costs involved in setting up a new home, there is a clear need for a greater link between saving and mortgages.
The key features of the Regular Home Saver Account are:
Steve Reid, Retail Director for Clydesdale Bank, said:
"What we understand from speaking to first time buyers is that with interest rates as low as they have been, they don't always see the value of saving."
"Regular Home Saver is straightforward and offers very real rewards for getting in to the savings habit and building a deposit: the more deposit you save, the bigger the reward.
"By providing very clear, tangible rewards for saving towards a deposit on a home, Clydesdale and Yorkshire Banks believe that they can help re-establish some of the link between saving and borrowing.
"As part of our ongoing commitment to First Time Buyers, we have created a programme of support, where the Bank and the customer share the objective of building a deposit and getting a deal on a mortgage. Alongside the products we will help prospective buyers understand the importance of a good credit record and the steps in the house buying process."
Customers can obtain more information about Regular Home Saver and First Time Buyer Mortgages offered by Clydesdale and Yorkshire Banks by calling 0800 678 1230 (Monday to Friday 8am to 8pm) or visiting www.cbonline.co.uk and www.ybonline.co.uk