The products include a two-year tracker and fixed rates over two, three and five years.
Find the latest industry jobs
Ricky Okey, managing director of Abbey for Intermediaries, said it wanted to develop a product for those people who wanted to move out of rental accommodation but were unable to save for a deposit.
“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. 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.”
get the daily news delivered to your inbox
The two-year tracker is priced at 6.29 per cent and the two-year fixed is at 6.35 per cent with a £995 fee or 6.99 per cent with no arrangement fee.
There is also no higher lending charges applicable on the range.
Michael Brill, director at Baronworth Investment Services, commented: “All round, it is a reasonably competitive range but for certain clients, if you look hard enough, you can find a better deal. For example, Cheltenham and Gloucester has a two-year tracker mortgage at 5.09 per cent with a £999 fee so you are saving £585 a year on a £150,000 mortgage.”
