Since the launch of its first-time buyer mortgage service 12 months ago, – putting pay to the cynics who suggest that this group of people are finding it impossible to get onto the property ladder.
The Co-operative Bank believes that mortgage lenders have a hugely important role to play in helping first-time buyers, and accredits its success to the way in which it supports its customers throughout the entire home-buying process, and to the new initiatives developed over the last 12 months to enhance its first-time buyer product range including:
• Fixed and discounted rates with lower application fees for FTBs
• 100%, or ‘no deposit’ mortgages
• Graduate mortgages with increased income multiples of up to 5 times salary
• Parental guarantor mortgages
• Buying with friends option available through full range of mortgages
In addition, in June this year, The Co-operative Bank entered into a partnership with ‘Places for People’, one of the UK’s largest housing associations, to further help first-time buyers onto the ladder by giving them the option to purchase part or all of their existing homes.
First-time buyers may have to save more nowadays to buy their first home, however, over the last 18 months, the average age of a first-time buyer has dropped to below 30 for the first time in eight years* – thus hinting at the fact that the tide is turning for those who have previously had to wait until their early to mid-thirties before buying their first property.
John Barker, Head of Mortgages at The Co-operative Bank, said: “We have been delighted with the initial success of our first-time buyer service, which has exceeded all of our early expectations with a year on year increase of almost 90 per cent. It may be a difficult climate for first-time buyers with constant increases in house prices; however it is pleasing to see from our figures that they are not being deterred from entering the market, and if recent Bank of England interest rate rises have the desired effect and reduce house price inflation, more first-time buyers will benefit in the long-term.
“In the meantime, lenders have a responsibility to look for new and innovative ways to make it easier for first time buyers to purchase a property, and it is important that we do not rest on our laurels but continue to develop and build upon the success of our service to show first-time buyers that their ultimate goal is achievable.”
