The deal is a two year tracker available up to 102% LTV for first timers and has a pay rate of 4.45% (5.4% APR).
Key Features Include:
* Bank Base Rate +0.45% for 2 years – current rate 4.45%
* Available to 105% LTV (102% for FTBs), MIG free
* Can pay up to double each month penalty free
* Redemption penalties only apply in tracker period
* Arrangement fee that can be added to the loan
Commenting on the new product, Elliot Nathan, mortgage development manager for The MarketPlace, said: "Many prospective buyers are simply unable to get a foot on the property ladder at present due to high house prices or a lack of a deposit. This product offers one solution to those buyers who do not have a deposit, but at a rate that is highly competitive. However, as it is not a fixed rate and interest rate are predicted to rise moderately more this year, borrowers do need to consider this in terms of affordability.
"Recent figures from the Council of Mortgage Lenders have shown that the number of first time buyers entering the market each month has fallen dramatically over the last few years. Five years ago first time buyers accounted for 48% of total lending. In 2003 they accounted for just 29% - a drop of nearly 20% - clearly showing how tough first time buyers are finding it. This product is just one answer for the beleaguered first time buyer, in what we hope to be a raft of solutions this year specifically tailored to them."
