Yorkshire Building Society has launched a new mortgage range designed exclusively for borrowers who have saved money to buy their first property with a Help to Buy (HTB) Isa.
The Help to Buy Isa Exclusive mortgage range features two and five-year fixed rate options for borrowers with a 5 per cent or 10 per cent deposit.
This includes a 1.72 per cent two-year fixed rate mortgage at 90 per cent loan-to-value (LTV).
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 the property ladder and we are 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 have 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 help guide them through their first home-buying experience."
The new range includes a 2.39 per cent five-year fixed rate mortgage at 90 per cent LTV as well as a 3.09 per cent two-year fixed rate mortgage and 3.75 per cent five-year fixed rate mortgage at 95 per cent LTV.
All four mortgages come with a £495 fee and free standard valuation.
Help to Buy Isas were introduced by the government in December 2015 to help first-time buyers saving for their first home.
Savers can deposit a lump sum of up to £1,200 in the first month of opening the account and up to £200 each month thereafter, up to a maximum balance of £12,000, to receive a government bonus of up to 25 per cent on savings.
Recent research conducted by the mutual showed 43 per cent of aspiring first time-buyers were currently saving for their first property with a Help to Buy Isa, and of those who have purchased a house in the last 12 months, 41 per cent said they had used the government-backed scheme.
The new range was welcomed by Daniel Bailey, principal at Derbyshire-based Middleton Finance.
Mr Bailey said: "The Yorkshire Building Society are offering some extremely competitive deals. It is great news for borrowers with smaller deposits and the free valuation will help with up front costs.
"It is worth comparing this with other Isa products on the market. For many borrowers this will be an attractive proposition."
aamina.zafar@ft.com
