Co-operative Bank Launches a New First Time Buyer Cashback Mortgage
Co-operative Bank has launched a new unique first time buyer cashback mortgage aimed at helping first time buyers (FTB’s) onto the property ladder. The new mortgage comes with the following features a 1% cashback to cover stamp duty or other fees that first time buyers may incur, a 4.5x income multiples (5x for graduates), a fixed rate of 6.29% for 5 years, No deposit required, Guarantor option available(x), a Home movers pack, and Free basic valuation.
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.