The new range of mortgages, available as part of the Government’s NewBuy scheme, are designed to help borrowers trying to take their first step onto the property ladder.
The NewBuy range offers three, five and seven year fixed rate deals starting from 5.49% with a fee of £99, and are available between 90% and 95% LTV.
All products come with the Homebuyer Solution, which includes a free standard mortgage valuation plus £250 cash back on completion, offering customers the upfront costs of purchasing a property.
The range includes a three-year fix at 5.49%, five-year fix at 5.49% with a £99 fee and a seven year fix at 5.99%, all offered with a £99 fee.
Miguel Sard, managing director of Abbey for Intermediaries, said: ‘We are delighted to support the Government’s NewBuy scheme and the UK housing market with the launch of a range of competitive fixed rate products with low upfront fees.”
“We expect there to be strong demand from intermediaries and their clients for these great deals, which also offer the added benefit of our Homebuyer Solution.”
Ben Thompson, MD Legal and General Mortgage Club said: “This additional competition into the market is precisely what is needed. There is some healthy momentum that has been created by the lenders that have already launched into NewBuy, and this move by Abbey for Intermediaries will help to increase consumer choice and keep pricing appropriately keen.
According to market research, for every £1 spent in the new build market, £2.84 is created in the wider economy and with the recent disappointing GDP figures, this NewBuy initiative is timely.
Recent regulatory changes and market turbulence has led to a more cautious approach by lenders rendering 95% products a rarity, said Thompson.
Nowadays there is increasing choice for those planning to buy a new home, and many wannabe homeowners are simply not aware, having lost faith and confidence as the market contracted so spectacularly over the last few years. On average, saving for a 10% deposit takes about 8 years, so to halve this by providing access to mortgages merely requiring a 5% deposit as things used to be, will help many bring forward their dream of owning a new home.”
A spokesperson for Abbey for Intermediaries said: “Our range of NewBuy products has been designed to meet the needs of customers with a smaller deposit, offering longer-term fixed rate products which provide the stability of fixed payments and peace of mind against any payment shock.”
