A first-time buyer mortgage has been launched by the Saffron Walden Herts & Essex to reflect the needs of homeowners in Hertfordshire and Essex.
The two-year capped discount mortgage has been launched following a survey which revealed more than nine out of 10 people do not believe first-time buyers can afford a house in the Hertfordshire and Essex region.
Richard Bolton, chief executive of the society, says: “This survey, combined with the fact the average cost of home for first-time buyers now stands at £135,000, proves there is a real issue for people wanting to get on the first rung of the property ladder.
“One of our recent membership panel meetings also identified first-time buyers as the people most needing assistance when it comes to affording a mortgage.”
The mortgage gives would-be first-time buyers the opportunity to borrow up to 95% of the property's value.
Repayments are 1.25% less than the standard variable rate for two years – currently 4.5%. In addition, the society has put a cap on the mortgage which means no extra interest is payable if interest rates rise above 6.25%. Borrowers also get a refund of the basic valuation fee, plus £350 cashback.