The Co-operative Bank has announced the launch of a new mortgage product aimed at first-time buyers.
Available at an income multiple of 4.5, increased to five for graduates, the mortgage offers one per cent cashback “to cover stamp duty or other fees that first time buyers may incur”.
There is also no deposit required and the product has a fixed rate of 6.29 per cent for the first five years.
Homebuyers who wish to borrow more than 95 per cent of the property’s value are advised by the Co-operative Bank that, as they are “a responsible lender”, there will be no Higher Lending Charges.
John Barker, head of mortgages at Co-operative Bank said that first-time buyers “are the lifeblood of the market”.
And he said that the new product was aimed at helping to alleviate some of the problems first-time buyers face.
The council of mortgage lenders recently released a report that stated the average first-time buyer spends 18 per cent of their income on mortgage payments.
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