View more on these topics

Abbey National launches First Home Saver account

Abbey National has launched a new First Home Saver account, the only high street savings account specifically designed for first-time buyers.

The account is aimed at potential first-time property buyers who need to save for a deposit and will benefit from the regular savings aspect of the account.

With the average house deposit now in excess of £18,000, would-be homeowners have to save more than ever to get on the property ladder. Compared with an average deposit of just £5,000 in 1996, first-time buyers now need to save over three times as much, with average deposits for London properties an incredible £31,100.

First Home Saver can be opened with a minimum of £100 and requires a standing order of at least £100 per month. Savers are encouraged to let their savings grow, as the account pays 3.50% gross p.a. interest each month when no withdrawals are made. For months when there is a withdrawal, or for any reason at least £100 is not paid in, the interest rate is 0.1%. This applies only for the month of withdrawal, unlike competitors&#39 similar accounts, which cut interest rates for the full year. Retail vouchers worth £150 are offered if customers choose an Abbey National mortgage.

Abbey National head of savings marketing Alexia Kilby, says: “Our research shows that people are more motivated when saving towards a goal and they like the idea of a specific savings account just for their house deposit. Customers also say they find it hard to be disciplined about saving long-term, that it is easy to procrastinate, and even more tempting to spend.”


Cover yourself when Processing mortgages

From Ronnie BowesIn view of the position in which several thousands of intermediaries now find themselves – and particularly after reading the recently published letter from Michael Lawrence (Mortgage Strategy, January 6) regarding his inability to pass the CeMAP exam – I must tell you what transpired when we had our annual inspection by the […]

Platform set to unveil new brand strategy

Platform, the new one-stop lending arm of Britannia created from the merger of Platform Home Loans and Verso, will unveil its new brand on January 30. Platform&#39s range of products will include the buy-to-let and self-cert products that used to be sold through Verso and the non-conforming range that was under Platform Home Loans, plus […]

Mortgage lending reached £219bn in 2002

Mortgage lending totalled £219bn in 2002, based on figures released yesterday by the Council of Mortgage Lenders. Over the year, remortgaging accounted for 38% of all lending at £83.6bn, the highest figure on record. Lending in December reached £19.5bn, showing no sign of any seasonal slowdown. Remortgaging remained strong in December, accounting for 39% of […]

MCCB to ensure supervision by random checks

The MCCB says it will enforce last December&#39s examination qualification requirement with random checks and reviews of sales processes, writes Harriet Williams. Supervision arrangements will come in for special attention amid fears that some intermediary firms are using compliance networks to rubber-stamp unauthorised advice. A senior industry source told Mortgage Strategy: “Brokers without CeMAP or […]


Out from the long grass? An IT and NI merger

Those with a long memory will recall that at the start of the last parliamentary term George Osborne announced his intention to merge income tax (IT) and national insurance (NI).  Headline grabbing as the initiative was, the reality of the complexities, challenges and costs of such a move resulted in this idea being kicked into the political long grass.


News and expert analysis straight to your inbox

Sign up