New Savings Account For First Time Buyers
Published: 6 April 2011 By MoneyHighStreet Staff Leave a Comment
Clydesdale and Yorkshire Banks have a new savings account aimed at first time buyers.
The new savings account, called Regular Home Saver, offers first time buyers the opportunity to save monthly for a deposit for their first home.
Payments can be varied and there’s the attraction of a bonus of up to £1,000 cashback when taking a Clydesdale or Yorkshire Bank First Time Buyer (FTB) mortgage.
These banks provide a 95% mortgage meaning that with the average first time buyer property costing almost £122,000, saving around £200 per month for a 5% deposit would take around 2 and 1/2 years.
Steve Reid, Retail Director for Clydesdale Bank, said: “Regular Home Saver is straightforward and offers very real rewards for getting in to the savings habit and building a deposit: the more deposit you save, the bigger the reward.”
He added “Alongside the products we will help prospective buyers understand the importance of a good credit record and the steps in the house buying process.”
The minimum monthly deposit amount is £200 and a minimum of £200 is also required to open and maintain the account. The interest rate on the savings account will track the Bank of England Base Rate, currently 0.5%.
Current Clydesdale & Yorkshire Bank FTB mortgages are:
- 95% LTV at 6.99% (fixed for 3 years) £599 arrangement fee, plus free valuation (5.5%APR)
- 90% LTV at 5.99% (fixed for 3 years) £599 arrangement fee, plus free valuation (5.2%APR)
- 90% LTV at 6.29% (fixed for 3 years) No arrangement fee, plus free valuation (5.2%APR)
