Abbey launches First Home Saver account

Abbey is launching the innovative First Home Saver (Special Issue 1) account aimed exclusively at helping first time buyers save up a deposit for their first home. The First Home Saver (Special Issue 1) offers a market leading eight per cent AER for first time buyers aged between 16 and 35 saving for a home.

Savers will earn a variable rate of eight per cent with no partial withdrawals allowed. On completion of saving/closure of the account savers must take a mortgage interview with Abbey. There will be no penalty for choosing a non-Abbey mortgage as Abbey is confident it will have the best mortgage available for first time buyers at the time of withdrawal.

There are no penalties for withdrawal, however customers who miss a payment or do not deposit between £100 and £300 a month will receive a rate of 0.10 per cent for that month only. The account is available from 3 November and savers can open an account at any Abbey branch.

Alison Brittain, Executive Director, Retail: "Abbey is committed to helping first time buyers get on the property ladder. We are one of the few lenders to have remained active in the mortgage market throughout the credit crunch.

"The best value deals are available to borrowers who have a deposit. By helping first time buyers save towards a first home, we are re-establishing the link between savings and a mortgage - and in so doing helping first time buyers to get more competitive, more affordable mortgages."