Leeds Building Society has launched a savings product and service specifically designed to support first-time buyers onto the housing ladder.
The account offers a rate of 1.50% gross p.a. variable and gross interest earned is doubled with cashback, up to a maximum of £1,000 when the savings are used as deposit for a mortgage with the society.
The minimum investment is £20 and the maximum investment is £50,000.
Kim Rebecchi, sales and marketing director at Leeds, says: “We are all well aware of the challenges faced by FTBs in terms of understanding the mortgage process, saving for a deposit and finding the right product to suit their needs. At Leeds Building Society, we have a proven track record of helping customers buy their first home and are constantly looking at ways to increase this support.”
The society carried out research on customers who fit the typical profile of a FTB. One of the key findings was that 90% of customers said that getting access to mortgage advice was important, with over 85% stating that a product of this type would be a good initiative.
Rebecchi adds: “This product offers FTBs an excellent introduction to the mortgage process by encouraging and supporting, through double interest, the process of saving up for a deposit. Furthermore, the double interest is paid in the form of a cashback, which means it can be paid gross. We also include interest earned over the life of the savings account, so the value of the cashback is even higher.
“We have a national branch network and operate on a ‘no appointment necessary’ basis. Customers will benefit from regular reviews with qualified mortgage advisers so that they fully understand the amount they can borrow and the costs involved as their circumstances and the market change.
“Furthermore, the benefits of the Mortgage Saver can be applied to any of the society’s mortgage products, including shared ownership, so that FTBs find a product to suit their individual needs.”