New research released today by the Co-operative Bank has shown that first time buyers are continuing to struggle in their quest to get onto the first rung of the property ladder. Rising house prices are still the main concern for the majority of people but over half of those questioned believe that the amount needed for a deposit (54%) and stamp duty fees (43%) are preventing first time buyers getting on the property ladder.

Main barriers preventing first time buyers getting on the property ladder

Reason Percentage of people
who feel this is a
barrier
Rising house prices 92%
Amount needed for a deposit 54%
High levels of personal debt 45%
Stamp Duty Fees 43%
Low pay 40%
Solicitors Fees 39%
Expectations are too high 32%
Lack of financial understanding 24%
issues related to job security 24%
Expensive household bills 23%

The research also shows that most people believe that building more affordable housing will help ease the problem (73%). Other popular initiatives include abolishing stamp duty for first time buyers (65%) and developing more shared ownership schemes (32%). Surprisingly only 3% of those questioned believed that more parental help would solve first time buyer’s woes.

As a responsible lender the Co-operative Bank does not impose costly Higher Lending Charges (HLCs) on borrowers who wish to borrow more than 95 per cent of the value of the property. Such charges, which are imposed by some other lenders, can potentially cost consumers up to an additional GBP2,000 when buying a home.

Also customers benefit from a number of positive environmental features including receiving a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.

In addition, for the duration of the mortgage, the Co-operative Bank makes an annual donation to Climate Care to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.

Details of the new product are as follows:
- 2-year tracker product currently at 5.09% (Bank of England Base Rate – 0.16%)
- Free legal and valuation fees for remortgages

The new mortgage product is provided by The Co-operative Bank and offers excellent overall value to all borrowers whether buying for the first time, moving home or simply remortgaging from another lender. Also, borrowers choosing to remortgage will benefit from free legal and valuation fees.

The new two-year tracker mortgage guarantees to track the Bank of England Base Rate, currently 5.25 per cent, minus 0.16 per cent for the duration of the loan.

In addition to offering a comprehensive range of mortgage products, smile does not impose costly Higher Lending Charges (HLCs) on borrowers who wish to borrow more than 95 per cent of the value of the property. Such charges, which are imposed by other lenders, can potentially cost consumers up to an additional GBP2,000 when buying a home.

Customers can benefit from a number of positive environmental features including receiving a free home energy report with their property valuation, which assesses the energy efficiency of the property and identifies ways in which it can be improved.

In addition, for the duration of the mortgage, smile will make an annual donation to Climate Care to help tackle global warming. Houses are one of the largest sources of carbon dioxide emissions in the UK and, by using the Bank’s annual donation, Climate Care will be able to offset around one quarter of an average home’s carbon dioxide emissions each year for the lifetime of the mortgage.