Bradford & Bingley is returning to the lending market for the first time in five years with a new mortgage aimed at the first-time buyer market.
The Professional FTB mortgage is aimed at young professionals who are looking to buy their first home but are still under a training contract and studying to pass their professional qualifications.
It is available to people in the following occupations: solicitors, accountants and actuaries.
This differs to many similar mortgages currently available as most lenders insist that the applicant is fully qualified prior to approving a mortgage application.
The mortgage is also being offered where at least one applicant who is qualified and practising as architects, doctors, dentists, surveyors and vets.
Bradford & Bingley will review its list of eligible professionals and hopes to extend it later in the year.
Key features include up to 100% LTV, enhanced income multiples up to 4.75% depending on income and a choice of three-year fixed rate or two different three year stepped discounts.
Customers can borrow from 25,001 to 250,000 and the minimum loan is 10 years, the maximum 45.
The product is portable and early redemption charges only apply within period of initial rate chosen.
There is also 1,000 cashback on one of the three-year stepped discounts and no booking fee.
There is a 499 completion fee that can be added to loan and a reduced broker fee of 99 for first-time buyers until October 31 2006.
Sean Murphy, product development manager at Bradford & Bingley, says: We felt that there was a gap in the first-time buyer market, which other lenders had been slow to explore.
Although there are similar mortgages already available we think our new product offers more attractive features such as a mix of higher income multiples and lower interest rates.
The Professional FTB has been carefully designed to help a particular niche that other lenders have largely ignored.
Young professionals that are not yet fully qualified and on a ‘training contract’ can now benefit from being able to step onto the property ladder sooner than they had expected.
The mortgage will initially be available through Bradford & Bingley branches or via its direct channels.
There are plans for the Groups intermediary brand, Mortgage Express, to offer it later in the year.