Yorkshire Building Society helps first-time buyers with revamped range
21 May 2018
Yorkshire Building Society has launched a suite of new mortgages aimed at helping first-time buyers after research conducted by the mutual confirmed the upfront cost of purchasing a first house remains one of the biggest challenges aspiring homeowners face.
The latest First-Time Buyers Report by Yorkshire Building Society shows two-in-five (42%) potential first-time buyers claim the upfront cost of buying a house, including saving for a deposit and paying mortgage fees, has prevented them from purchasing a property sooner.
In response, the Yorkshire has introduced a number of new mortgages to help would-be homeowners, including upfront fee-free options, competitive mortgage rates and £1,000 cashback on selected mortgages, exclusively available to first-time buyers.
The £1,000 cashback and fee-free feature is available on the following mortgages:
• 2.29% two-year fixed rate mortgage at 90% loan-to-value (LTV)
Based on an assumed completion date of 01/07/18, a mortgage of £200,000 payable over 25 years initially on a fixed rate of 2.29% until 01/09/20 followed by our Standard Variable Rate, currently 4.99%, for the remaining 23 years would require 24 monthly payments of £874.86 and 276 monthly payments of £1144.58.
The total amount payable would be £336,990.72 made up of the loan amount plus interest of £136,990.72 and free standard valuation fee and no product fee.
The overall cost for comparison is 4.6% APRC.
Note: What you will pay may vary from this and will depend on your personal circumstances.
Janice Barber, Mortgage Manager at Yorkshire Building Society, said: “Buying your first home is often one of the most exciting purchases you can make, but as our research shows, the upfront costs of buying a home continue to be a burden.
That’s why we’ve made a number of changes to our mortgage range most suited to first-time buyers and borrowers with smaller deposits – we’re hoping to ease the financial strain of the upfront financial challenges they face, whilst at the same time understanding that all our borrowers have differing needs.
We’re confident our new range offers choice to those looking to take their first step on the property ladder with a variety of enhanced cashback, low fee and low rate options.
The mutual has also reduced rates across its mortgage range for borrowers with smaller deposits, up to 10% LTV, who are moving home or remortgaging.
Despite the challenges upfront costs present, findings from the research show how aspiring homeowners still place significant importance on purchasing their first home, with nearly two in five (39%) saying that owning a house is more important to them than any other life event, including getting married or having children.
The full research report is available to download here.
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