A range of mortgages for first-time buyers who have saved money to buy their first property with a Help to Buy ISA has been unveiled this week by Yorkshire Building Society.
The new products, which include deals for borrowers with deposits of as little as 5% of the property purchase price, come as research revealed nearly half of first-time buyers were saving for their home using the ISAs.
The Government-backed savings schemes were launched in December 2015 to provide a helping hand onto the property ladder for aspiring homebuyers.
They allow savers to deposit a lump sum of up to £1,200 in the first month of opening the account and up to £200 each month from then on, up to a maximum of £12,000. Savers will receive Government bonus of up to 25% on the savings.
According to research by Yorkshire Building Society, 43% of aspiring first-time homeowners were saving for their house or flat using a Help to Buy ISA.
Meanwhile, 41% of first-time buyers who have bought a property in the last year did so using the Government-backed savings plan.
Now Yorkshire has designed its new mortgage range, which includes two and five year fixed-rate deals for people with 5% or 10% deposits, with these borrowers in mind.
Janice Barber, mortgage manager at Yorkshire Building Society, said: “We understand how tough it can be for first-time buyers to take that initial step on to the property ladder and we’re constantly looking at ways we can help them to own their own home.
“Our latest First Time Buyers Report showed almost half of those saving for their first property are doing so with a Help to Buy ISA. We’ve launched this exclusive new range of mortgages to directly appeal to this group of prospective borrowers with the aim of offering a competitive rate and an excellent service to guide them through the home-buying experience.”
Among the range is a two-year fixed-rate mortgage with a 90% loan-to-value (LTV) with rates starting at 1.72% and 95% LTV which starts at 3.09%. Borrowers can also take advantage of a five-year version which offers rates starting at 2.39% on a 90% LTV or 3.75% on a 95% LTV deal.
They all come with a £495 fee and free standard valuation.
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