The deal has a maximum loan-to-value of £500,000 and requires no deposit. These mortgages are open to everyone, however, it is most likely to be useful to first-time buyers, as well as people who have recently separated and are struggling to raise a deposit to get back onto the housing ladder.
Ricky Okey, managing director for Abbey for Intermediaries, said: “With the average age of a first-time buyer pushing 34 years old, we know that many people are increasingly frustrated at their inability to get on the property ladder. Through no fault of their own, many first-time buyers have not been able to save for a deposit, but are very reluctant to keep paying rent, which they feel is just wasted money. Likewise, divorcees can often find themselves starting out again financially.
“We wanted to develop a product which helps people who are struggling to get onto the housing ladder. Given that the average price of a house in the UK is now well above the £200,000 mark, it was important to us that we offer people the opportunity to take out a sufficient size loan without demanding a deposit.
“All Abbey’s mortgage lending is subject to our rigorous affordability criteria and we make every endeavour to ensure that no-one borrows more than they have the ability to repay. This is even more important when you are dealing with no deposit mortgages, so people can rest assured that we will be lending responsibly.”
