A lender is offering a range of mortgages for buyers with low deposits after it uncovered evidence upfront costs were creating the biggest challenge for aspiring homeowners.
Research by Yorkshire Building Society discovered 42% of potential first-time buyers had been prevented from purchasing a property because of the large amount required for a deposit as well as the cost of mortgages fees.
The discovery prompted Yorkshire Building Society to launch a range of mortgages aimed at helping first-time buyers who were struggling to overcome these hurdles.
The range includes upfront fee-free options, ‘competitive’ mortgage rates and £1,000 cashback on selected mortgages which are all exclusively available to first-time buyers.
Borrowers interested in the cash back and fee-free feature can take advantage of rates starting at 2.29%, which is available on the two-year fixed rate loan with a 90% loan-to-value (LTV).
There are also five-year fixed-rate options and deals for buyers with 5% deposits.
Janice Barber, mortgage manager at Yorkshire Building Society said: “Buying your first home is often one of the most exciting purchases you can make, but as our research shows, the upfront costs of buying a home continue to be a burden.
“That’s why we’ve made a number of changes to our mortgage range most suited to first-time buyers and borrowers with small deposits.
“We’re hoping to ease the financial strain of the upfront financial challenges they face, whilst at the same time understanding that all our borrowers have differing needs.”
According to Yorkshire’s research, aspiring homeowners still place significant importance on purchasing their first home. Nearly two in five said it was more of a priority for them than any other life event, including getting married or having children.
Barber added: “We’re confident our new range offers choice to those looking to take their first step on the property ladder with a variety of enhanced cashback, low fee and low rate options.”
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