Banks help first time buyers with Regular Home Saver Account
Clydesdale and Yorkshire Banks have highlighted the success of their Regular Home Saver Account in helping First Time Buyers get onto the property ladder.
Launched in April 2011, the account 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 cash back when taking a Clydesdale or Yorkshire Bank First Time Buyer (FTB) mortgage.
One of the first to get onto the property ladder with the help of the Regular Home Saver account are Luke Taylor and his girlfriend, Tanika Sheppard.
Luke, a 22 year-old fabricator, and Tanika, a 23-year old nurse, had previously been living with Luke's parents in Doncaster when they decided that they wanted to save for their own house.
The couple began saving a deposit with Yorkshire Bank's Regular Home Saver product in June 2011. By both saving £300 each month, it did not take them long to build a deposit of £5,500 to buy their first property together, a three-bedroom house in Doncaster.
Impressed by the Bank's competitive products, Luke and Tanika have also secured one of Clydesdale and Yorkshire Bank's First Time Buyer 95% LTV mortgages and will get the keys to their new home at the end of April.
There have been high levels of demand for the Regular Home Saver account with most prospective homeowners keen to put away more than the £200 minimum required.
Over the past 12 months 39% of those who have opened an account are joint applicants compared to 61% who are paying into an account on their own.
Those with their own Regular Home Saver account are saving considerably more than those with joint accounts. The average amount for sole account holders is in the region of £2,800 to £3,100 compared to £2,150 to £2,450 for joint account holders.
Clydesdale and Yorkshire Banks also offer a competitive 95% loan-to-value mortgage for first time buyers. The mortgage is fixed for three years at an initial rate of 6.19% before moving to the standard variable rate after this period. There is an arrangement fee of £599 and the bank will pay for one home valuation.
Steve Reid, Retail Director for Clydesdale Bank, said: "We appreciate how difficult it can be for first time buyers which is why we remain committed to supporting this market with a range of competitive mortgage products.
"In addition to our 95% LTV mortgage, we also offer support to customers throughout the whole buying process with our Regular Home Saver account, which helps them build a deposit and get a foot on the housing ladder."
For more information on the mortgage products offered by Clydesdale and Yorkshire Banks, visit cbonline.co.uk or ybonline.co.uk.