Clydesdale and Yorkshire Banks have launched a new 95% LTV first-time buyer deal that is cheaper than some of the loans announced under Help to Buy 2.
The banks now offer a three-year fixed rate first-time buyer mortgage charging 4.99% to 95% LTV, a cut of 0.50% from their previous rate of 5.49%.
That is 0.2% cheaper than the Halifax Help to Buy 2 two-year fixed rate at 95% LTV, which has been priced at 5.19%.
It is also 0.5% cheaper than a five-year fixed rate from RBS and NatWest available through Help to Buy 2, which charges 5.49% at 95% LTV.
The rate is the same as the RBS and NatWest two-year fix, which also charges 4.99%.
The Clydesdale and Yorkshire deal has the further advantage zero arrangement fees, while the Halifax deal carries a £995 product fee. The RBS and NatWest deals also have no fee.
Clydesdale and Yorkshire have also launched a new three-year fixed rate to 90% LTV priced at 3.99%.
First-time buyers taking out either of the Clydesdale and Yorkshire deals will also benefit from free standard valuation and £250 cashback on completion.
Both rates are offered across the banks' retail branches and direct networks.
Andrew Pearce, retail director for Clydesdale Bank, said: “We are long-time supporters of first-time buyers with lower deposits having kept 95% loans available when others withdrew theirs. We have focused on proper underwriting, good affordability measures and consideration of individual circumstances.
“Our new 95% first-time buyer mortgage is simple; one loan, one rate, no arrangement fee. Plus there’s the added benefit of a free valuation and £250 cashback.
"This underlines our ongoing commitment to playing our part in a healthy, sustainable housing market.”
Comments
95% LTV is considered way too high by our standards.
Too much easy money won't help to support sustainable housing market.
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