Clydesdale and Yorkshire Banks have launched a new savings account to help first time buyers build a deposit and get a foot on the housing ladder.
Regular Home Saver provides a simple way to save monthly towards a deposit on a first home, with the flexibility to vary payments during the term and the added bonus of up to £1,000 cashback when taking a Clydesdale or Yorkshire Bank first time buyer mortgage.
The average UK first time buyer property costs an estimated £121,717 meaning a five per cent deposit would be £6,085. Saving around £200 each month for two and a half years would achieve this target.
The key features of the Regular Home Saver Account are:
Minimum monthly deposit amount of £200
Minimum amount required to open and maintain the account is £200
Payments can be increased or decreased provided the minimum monthly deposit is made
Interest rate will pay and track Bank of England Base Rate (currently 0.5 per cent)
Customers saving a deposit of at least five per cent and taking a Clydesdale or Yorkshire Bank FTB mortgage will be eligible for £500 cashback
Customers saving a deposit of at least 10 per cent and taking a Clydesdale or Yorkshire Bank FTB mortgage will be eligible for £1,000 cashback
40 days notice for withdrawals
The 40 day notice period will be waived if the withdrawal is used as all or part of a deposit to purchase a property with a Clydesdale or Yorkshire Bank first time buyer Mortgage.
A minimum of 12 consecutive monthly deposits is required to be eligible for the cashback benefit with one payment holiday permitted during a calendar 12 month period
Interest is calculated on a daily basis and credited to the account on the last business day of each quarter in March, June September and December.
Steve Reid, retail director for Clydesdale Bank, said:
“What we understand from speaking to first time buyers is that with interest rates as low as they have been, they don’t always see the value of saving.
“Regular Home Saver is straightforward and offers very real rewards for getting in to the savings habit and building a deposit: the more deposit you save, the bigger the reward.
“By providing very clear, tangible rewards for saving towards a deposit on a home, Clydesdale and Yorkshire Banks believe that they can help re-establish some of the link between saving and borrowing.
“As part of our ongoing commitment to first time buyers, we have created a programme of support, where the bank and the customer share the objective of building a deposit and getting a deal on a mortgage. Alongside the products we will help prospective buyers understand the importance of a good credit record and the steps in the house buying process.”
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