The Professional FTB mortgage is aimed at young professionals who are just starting out in their careers and are looking to buy their first home but are still under a training contract and studying to pass their professional qualifications in the following occupations solicitors, accountants and actuaries. This differs to many similar mortgages currently available as most lenders insist that the applicant is fully qualified prior to approving a mortgage application. Its fixed rate is particularly competitive compared to similar products.
The mortgage is also being offered where at least one applicant who is qualified and practising as architects, doctors, dentists, surveyors and vets. Bradford & Bingley will review its list of eligible professionals and hopes to extend it later in the year.
Key features include:
Loans up to 100% of the property value
Enhanced income multiples – up to 4.75% depending on income
Choice of three-year fixed rate or two different three year stepped discounts
Borrow from £25,001 to £250,000
Minimum loan 10 years, maximum 45 years
Portable. Early redemption charges only apply within period of
initial rate chosen.
£1,000 cashback on one of the three-year stepped discounts
No booking fee. £499 completion fee can be added to loan.
Reduced broker fee of £99 for first time buyers until 31/10/2006
Commenting on the launch of the new mortgage, Sean Murphy, product development manager at Bradford & Bingley, said: “We felt that there was a gap in the first time buyer market, which other lenders had been slow to explore. Although there are similar mortgages already available we think our new product offers more attractive features such as a mix of higher income multiples and lower interest rates.
“The professional FTB has been carefully designed to help a particular niche that other lenders have largely ignored. Young professionals that are not yet fully qualified and on a 'training contract' can now benefit from being able to step onto the property ladder sooner than they had expected.”
The mortgage will initially be available through Bradford & Bingley branches or via its direct channels. There are plans for the Group’sintermediary brand, Mortgage Express, to offer it later in the year.
