First time buyers, we’re listening
Chelsea Building Society has tuned into the needs of first time buyers and launched a new, unique mortgage range, offering offset at no extra cost, allowing first time buyers to get the most out of their savings.
An offset mortgage allows a home buyer to reduce the interest charged by offsetting the mortgage against a credit balance, often a savings account. For example, if you are taking out a mortgage for £100,000 and have £10,000 in savings, taking out an offset mortgage means you would only be charged interest on £90,000.
Sunjeev Sahota is the Product Manager at Chelsea Building Society:
“Prior to launch we carried out research with both current and potential first time buyers. One of the findings that stood out was that current first time buyers value offset and that 3 in 4 potential first time buyers intend to continue saving post-purchase. This is something we want to encourage, and is why the offset functionality in our first time buyer range comes with no additional cost – something which is unique in the market.”
The range, starting at 2.99% (up to 75% loan to value and a £1495 fee) and including a 90% LTV available at 4.49%, also comes with a 1% cashback of the value of the loan. Sunjeev Sahota continues:
“First time buyers also told that the upfront cost they wanted most help with was stamp duty. This is why we’ve introduced the 1% cash back feature: it’s up to customers how they use the cash back, but with stamp duty at 1% for residential properties valued between £125,000 and £250,000, this will be a big help for a lot of first time buyers.”
Content correct at time of publication