However lending to this sector by the Society has been growing rapidly since it introduced a specific first time buyers package last spring.
The key to attracting first-timers was a package of benefits on 100% mortgages which are completely fee-free. Buyers can choose from a competitively priced fixed rate product or a two year stepped rate linked to the Bank of England base rate. Both products feature fee-free applications, refund of valuation fee, and a free legal service or £250 contribution to own solicitors costs. In addition there is no Higher Lending Charge up to 100% which saves the borrowers £3,000 on a £100,000 mortgage.
Rachel Court, Head of Mortgages at Yorkshire Building Society said," It became obvious to us that a major stumbling block for many starters in the property market was the size of deposit needed by most lenders. Added to that was the cost of application fees and legal costs. By removing all of these, any savings held by the applicants could be used to buy such essentials as furniture and cooking equipment so that their first home is a step up from camping! We have 131 branches across the country where staff are specifically trained to help first time buyers through the maze of forms that house buying entails."
