Co-op assumes role of FTB knight in shining armour
The Co-operative Bank is on track to achieve its pledge to lend £360m to first time buyers in 2012 with the introduction of a competitive new mortgage with just a 10 per cent deposit.
The two year fixed rate is available at 3.99 per cent with no arrangement fee, allowing first time borrowers to lock in a low rate without the need for the sizable deposit, a sticky wicket for many.
In addition to this the lender has also joined forces with Camden Council launching a shared ownership scheme to help those in the area overcome high house prices as well as continuing to offer guarantor mortgages and its Share to Buy product which allows friends to pool resources and purchase property together.
James Hillon is the Head of Mortgage at the bank:
“We welcome the FLS [Funding for Lending Scheme] as a route to boosting the housing market and the wider economy, but believe this goal will only be achieved by increasing the availability of mortgages for first time buyers rather than just focusing on remortgage customers.
“By offering a market leading rate fee free to those with a 10% deposit, we hope to remove some of the barriers to getting on the property ladder and offer first time buyers a helping hand.”
In separate first time buyer news, new figures by the Home Builders Federation showed that over 2000 people have now reserved new homes via the Government’s NewBuy scheme.
NewBuy allows buyers, including first time buyers, to secure their new build home with a 5 per cent deposit.
Content correct at time of publication