The professional first-time buyer mortgage is the first own branded mortgage to be launched by Bradford & Bingley (B&B) in five years.
B&B say it is the first mortgage aimed at young professionals who are just starting out in their careers and looking to buy their first home but are still under a training contract and studying to pass their professional qualifications.
The product applies to occupations such as solicitors, accountants and actuaries and B&B also offer the mortgage where at least one applicant is qualified and practising as architects, doctors, dentists, surveyors and vets.
Sean Murphy, Product Development Manager at B&B, said: “We felt that there was a gap in the first-time buyer market, which other lenders had been slow to explore. Although there are similar mortgages already available, we think our new product offers more attractive features such as a mix of higher income multiples and lower interest rates.”
Moneysupermarket.com, the price comparison website, agree that this is an interesting re-emergence from B&B and welcome help for first-timers.
Louise Cummings, head of mortgages at moneysupermarket.com, said: “In targeting young professionals such as trainee solicitors, accountants and actuaries, it has cleverly recognised a more neglected target audience, where borrowing could be enhanced by future earnings potential.
“As always, more competition in the first-time buyer arena is welcomed and will assist in driving down rates and creating more flexible deals.”
However, moneysupermarket.com, believe that there could be other deals available that would be better suited to first-time buyers.
Cummings said: “Although the enhanced income multipliers on the B&B products at 100 per cent seem generous, first-time buyers could get a better deal at 95 per cent with lenders such as Cheltenham & Gloucester that utilise the affordability model to calculate the maximum borrowing and therefore could be willing to lend up to five times the salary of first-time buyers, especially to the types of occupations targeted by B&B.
“As always, those ‘professionals’ with a 5 per cent deposit or more should search the whole market before committing to a first-time buyer specific mortgage. Having such a deposit will open up an array of products at better rates and even if in trainee status as long as they are earning, they will be able to qualify for these products.”
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