The Chelsea Building Society has launched a new mortgage for first-time buyers that offers an offset option so borrowers can use their savings to pay down their mortgage.
The new product offers borrowers the chance to get one per cent cashback on the full value of the loan that they borrow which could help them cover the costs of stamp duty or other mortgage costs.
The Chelsea BS conducted research that found that 75 per cent of first-time buyers want to keep saving after they get their mortgage and with savings rates low, the money could be put to better use overpaying on their mortgage repayments.
Sunjeev Sahota, Chelsea Building Society Product Manager, said: "Prior to launch we carried out research with both current and potential first time buyers. One of the findings that stood out was that current first time buyers value offset and that 3 in 4 potential first time buyers intend to continue saving post-purchase.
“This is something we want to encourage, and is why the offset functionality in our first time buyer range comes with no additional cost – something which is unique in the market.”
Additionally, the building society has a range of two-year fixed rate mortgage options including two options for borrowers with a 75 per cent loan-to-value (LTV) ratio. Borrowers can opt for a rate of 2.99 per cent with a fee of £1,495 or alternatively choose a rate of 3.19 per cent with a reduced fee of £495.
For borrowers with a smaller deposit of 15 per cent, the rate is 4.24 per cent with a £495 fee or borrowers with just a ten per cent deposit, the rate is 4.49 per cent with a £1,495 fee.
Sunjeev added: "We have listened to first time buyers, and we recognise that each individual case is unique, but this new mortgage range with offset, cash back, competitive rates and exceptional customer service highlights our focus and determination to offer excellent mortgages and to continue helping first time buyers step onto the property ladder."
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