It has an initial rate of 3.95% in year one and offers borrowers 1% cashback on completion. This would equate to monthly interest repayments of £330 on a £100,000 mortgage in the first year and cashback totalling £1,000.
Features include a 1.75% discount in year one; a 0.30% discount in year two; then a lifetime loyalty discount. There is a free valuation and free accident, sickness and unemployment cover for 6 months. Borrowers can make capital repayments of up to 10% of the mortgage, without charge, each year for four years.
Jennifer Holloway, head of corporate communications, commented, “When people are buying their first house, they often don’t think further than saving the down payment and getting a mortgage. But a new house comes with many additional costs – furniture, fixtures and fittings, unexpected bills. This mortgage offers a 1% cashback to help first-time buyers enjoy their new home, whilst still benefiting from an attractive rate of interest.”
