Yorkshire Building Society is offering first-time buyers an extra £500 cashback when they complete on a mortgage.
All those doing deals at 90 per cent or 95 per cent loan-to-values will be eligible for the extra cashback, which will be applied on top of all other existing incentives for the specific mortgage they choose.
The lender gave an example of a first-time buyer who took out a 2.89 per cent two-year fixed rate with a 90 per cent deposit and no product fee, free standard valuation and £250 cashback on completion, receiving an additional £500 cash back; taking the total cashback on completion to £750.
Brendan Gilligan, mortgage product manager at Yorkshire Building Society, said they understand while buying a first home is a landmark event for many, it can also be hard on bank balances.
He said: “Giving first-time buyers an extra £500 cashback when they complete on their mortgage gives them a little extra money to use in whatever way will benefit them most – for example, putting it towards their moving costs, using it to buy furniture or even saving it for a rainy day.”
At the start of this year, the latest first-time buyer tracker from Your Move & Reeds Rains revealed the number of first-time buyers rose by almost a quarter in 2015, as house prices fell.
November saw 31,300 complete applications for first homes, up 23.7 per cent annually, and the most since August 2007.
Average purchase prices for first-time buyers dropped 4.7 per cent since November 2014, the first annual fall since March 2013.
peter.walker@ft.com
