With the aim of helping FTBs get on to the property ladder, the product comes with 1 per cent cashback to cover Stamp Duty and other fees, has a fixed rate of 6.29 per cent for five years and has no required deposit.
Free basic valuation and 4.5 times income multiples – with five times for graduates – are also included, with a guarantor option offered from the end of April. An application fee of £399 exists on the product.
Catch up on the industry buzz
Rising house prices have been seen as the main barrier for FTBs according to a recent survey conducted by tickbox.net, with 92 per cent of respondents citing this as the prime reason. 54 per cent stated the amount needed for a deposit, and 45 per cent blamed high levels of personal debt as barriers.
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John Barker, head of mortgages at Co-operative Bank, said: “We believe that mortgage products such as this should be developed to help alleviate some of the extra worry for FTBs, by providing them with extra cash to pay for some of the upfront costs associated with home buying such as Stamp Duty.”
Phillip Stevenson, director at Ark Financial Planning,welcomed the product. He said: “FTBs need all the help they can get and often they need help with loan-to-value rather than one per cent cashback. However the income multiples are very good and this looks like an ideal package for FTBs.”
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