This new offering from the lender which introduced the 100% ‘Track Record’ mortgage for first-time buyers, is aimed at helping would-be buyers better prepare for their journey into homeownership.
The new suite of new mortgages includes a five-year fixed rate with £1,500 cashback. This has a rate of 5.89% and is available for those who need to borrow up to 95% of their property’s value – 95% loan-to-value (LTV).
There is also a two-year fixed rate at 6.09% for those who need to borrow at 90% LTV and a five-year fixed rate at 5.69% for those with 95% LTV borrowing requirements. These do not come with cashback but they are fee free.
All the mortgages come with added extras of an income booster option, free valuation (for mortgage purposes only) and a discount on Level 2 and 3 surveys. There are mortgage terms up to 40 year terms available and the loan amount will be calculated based on 5.5 times your income.
The savings account, meanwhile, allows first-time buyers to deposit up to £500 per month (which can be rolled over a month is missed) for a term of two years.
No withdrawals are allowed during this time and the interest rate is variable, meaning it can be changed at any time. There is a maximum balance of £12,000.
These new products, which are being launched on Tuesday 23 July, come after Skipton uncovered concerning statistics which highlighted the realities of securing a home in Britain today.
Its research found only one in eight potential first-time buyers can purchase the average first-time buyer property in their area. This falls to just one in 100 for those earning £22,850 or less.
Almost 80% of potential first-time buyers have insufficient savings for the deposit needed to get onto the property ladder in their area.
What’s more four in 10 renters are spending 45% or more of their income on essential housing costs creating a major barrier to saving for a deposit.
Charlotte Harrison, CEO of Home Financing at Skipton Building Society said: “Everyone should have somewhere to call home, but achieving that today is an insurmountable struggle for far too many.
“And today a clear picture has emerged from Skipton Group’s Home Affordability Index out today showing the enormous struggle facing renters and first-time buyers across the country, with only one in eight potential first-time buyers in Great Britain been able to purchase the average first-time buyer property in their area.
“The challenge for first-time buyers in particular is urgent, and while it demands coordinated innovation and collaboration, we at Skipton want to do our bit.
“We know it’s all very well highlighting key housing issues, but this doesn’t help anyone if you don’t spend time exploring and investing in the solutions. Which is why, today I’m pleased to announce our new range of first-time buyer products, to help get more first-time buyers onto the property ladder.”
Loading ...