First time buyer help from Abbey

25-Nov-2005

Finding a deposit can be difficult for many aspiring homeowners, but Abbey has released two new products to help with this problem.

Click here for further information on finding a deposit

Designed with first time buyers in mind, the mortgages provide a high maximum loan amount of 97 per cent, leaving potential buyers with less deposit money to raise.

A two-year tracker option is available with a 4.74 per cent interest rate and a fee of £499, while a five-year fixed option offers a 5.34 per cent rate and comes at £399.

If you are interested in buying a new house within a 'gifted deposit' scheme whereby you don't need to come up with a deposit but just pay a nominal fee of £5000 click here

A free valuation and £250 cashback offer will also help to reduce the overall cost for aspiring homeowners.

"Abbey has eased the pressure on first time buyers by requiring a deposit of just three per cent, which we offers more security than a 100 per cent mortgage and more flexibility than a standard 95 per cent mortgage," explained Lal Tawney, Abbey mortgage spokesperson.

"For an average first time buyer of a property of around £160,000, this would mean a difference of £3,200, which is a significant amount, even if you are saving with a partner or friend."

Click here to find out about the finances of borrowing with friends, i.e. to find out how much you can borrow together and what it will cost you

To find out more about creative mortgages designed specifically for first time buyers click here

If you want to post your comments on today's news in the FirstRung Forum click here

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