Introducer Today

News Story

RBS IP launches FTB five-year saver mortgage

Wednesday 20th January 2010

RBS Intermediary Partners has launched its First Home Saver Account designed to help first-time buyers save for their deposit, in a pilot scheme with Legal & General Mortgage Club.

The broker-exclusive regular savings account offers deposit savers interest at a current rate of 0.5 per cent and a tax-free cash back sum of up to GBP 5,000.

The cash back sum is based on the lowest balance in the account over the preceding six months prior to drawdown. To receive the cash back, account holders must qualify for and take out an RBS mortgage.

RBS IP said the account offers prospective first-time buyers a practical way to save for a deposit and gives brokers a pipeline of future business.

“Once the client has saved for the required deposit, the broker then will be able to arrange the mortgage, earn a proc fee and potentially advise them on other appropriate products,” it said.

Graham Felstead, director of Intermediary Mortgages, RBS, said: “There has been much talk of diversification in the last 12 months, but this is a practical demonstration of our commitment to introduce more opportunities for brokers to grow their businesses.”

He added: “The Saver Account enables brokers to create relationships with potential first-time buyers even before they are ready to buy. And, because they put in place a savings account that will help clients save for a new home, they have a much better chance of retaining the client and earning a proc fee when they arrange an RBS mortgage for them, such as the first-time buyer, five year fixed rate, no arrangement fee exclusive deal we are currently running with Legal & General Mortgage Club.”

Ben Thompson, director, mortgages at Legal & General said: “First-time buyers have not had much to shout about recently. However, things seem to be on the up as loans to first time buyers are up almost 50 per cent and first time buyer confidence is on the increase.”

He added: “It’s clear that there is significant pent-up demand amongst people who have perhaps wanted to buy for a while but have had to continue renting or living with family or friends. We’re starting to see that situation change and we’re pleased to be working with RBS Intermediary Partners to be a part of that change.”

Clients who wish to open an account must deposit an initial sum of at least GBP100 and arrange a standing order of at least GBP 50 a month. They can also make ad hoc payments into their accounts by phone, at an RBS branch or online. Account holders can make up to three free withdrawals per quarter.

Have your say on this story using the comment section below

Send to a Friend

View Comments 0 comments

Report Abuse

There have been no news comments

Post Comments

Please login to post comments:

Post Comments without login

Most Read News Stories:

Regulator to ban self-cert mortgages
Tuesday 13th October 2009

Tesco to launch mortgages before current accounts
Monday 23rd November 2009

Order to suspend HIPs is signed
Monday 17th May 2010

Mortgage advisor pleads guilty to charges
Wednesday 29th October 2008

Case result major blow for claims management firms
Monday 26th October 2009

Discuss in Forum

RSS Feed

Share this article:

Digg it

Del.icio.us

Newsvine

Nowpublic

Feedback:

If you have any questions or suggestions about this article or our news section, please don't hesitate to contact us.

Claims Financial are a market leader in the £30 billion financial compensation market and 99% of our work comes from partners just like you.

Read More