Yorkshire Building Society is helping first-time buyers get their foot on the property ladder by launching a trio of two-year mortgages.
The high loan-to-value (LTV) home loans are available exclusively to would-be homeowners with 5 per cent, 10 per cent and 15 per cent deposits.
The new two-year fixed rate range includes a 1.99 per cent at 85 per cent LTV, 2.39 per cent at 90 per cent LTV and 3.89 per cent at 95 per cent LTV option.
All the mortgages have a £495 fee, and include free standard valuation plus £500 cashback on completion.
Charles Mungroo, mortgage manager at Yorkshire Building Society, said: “We’re committed to helping people achieve their homeownership ambitions, and we hope these mortgages tailored to those with smaller deposits will really appeal to aspiring homeowners.
“We know that it is getting harder for young people to buy a home, and many rely on financial support from their parents to make this dream a reality.
“We hope the combination of low rates and additional features, designed to help with the upfront costs of moving into a property, will make the plight of buying your own home a little easier.”
David Hollingworth, associate director of communications at L&C Mortgages, said Yorkshire Building Society is a lender that already supports those with smaller deposits well in its product range.
For example, he said it already offers the leading 95 per cent two-year fixed rate at 3.3 per cent to 95 per cent LTV.
Mr Hollingworth said this deals carries a fee of £995 although does take the sting out with a £250 cashback.
He said: “The focus of the new first-time buyer options are to reduce the impact of a bigger arrangement fee by easing it to £495 but also throwing in a free basic valuation and an attractive £500 cashback.
“These rates act as a useful complement to the existing deals and could appeal to those that are taking a smaller mortgage or are simply throwing a lot of resource at building their deposit and prefer to keep costs down with the lower fee structure and benefit of the cashback.”
emma.hughes@ft.com
