Britannia launches FTB three-year fixed rate product
Britannia claim the new deal will highlight there are two types of FTBs in the market.
Britannia’s managing director of member business, Tim Franklin said: “Today’s mortgage market is very different to that of ten or twenty years ago. Firstly, there are the traditional FTBs – relatively young people who have never owned a house before. Secondly, due to higher rates of divorce, there are many former owner-occupiers who are returning to the housing market on their own.
“Britannia recognises that the needs of these two groups are distinctly different. Those returning to the market are likely to have equity from a previous property to use as a deposit. Britannia’s new mortgage has been tailored to offer tiered interest rates depending on the deposit size.
“For the traditional FTB, the product has no Higher Lending Charge, which means that based on a property valued at £125,000, those who are borrowing more than 90 per cent could make a saving of more than £2000.”
This FTB mortgage is also fee free which will appeal to both customer groups. There are no administration or arrangement charges and Britannia will pay for the first standard valuation, saving all FTBs up to £600 in upfront fees.