Abbey: 8% savings account for first-time buyers
Monday, 03 Nov 2008 11:56
Abbey has launched a savings account to help first-time buyers save a deposit and get their foot on the property ladder.
The Home Saver Account pays eight per cent interest and is aimed at people aged between 16 and 35 who are saving for their first home.
Savers are required to put away between £100 and £300 per month by standing order.
There are no penalties for withdrawals but customers who miss payments or do not deposit the full £100 to £300 will receive interest of only 0.10 per cent that month.
When they have completed their savings plan, and have accrued enough for a deposit, savers must take a mortgage interview with Abbey. The bank said it would not penalise anyone who chose a non-Abbey mortgage.
Alison Brittain, executive director of retail at Abbey, said: "The best value [mortgage] deals are available to borrowers who have a deposit.
"By helping first-time buyers save towards a first home, we are re-establishing the link between savings and a mortgage – and in so doing helping first-time buyers to get more competitive, more affordable mortgages."