Coventry for intermediaries has launched a range of mortgages for first-time buyers (FTBs), which offers 95% loan-to-value (LTV) products.
The products have £500 cashback on completion and fee-free options.
Highlights of the range include a 90% LTV 2-year fix at 2.45% and a 95% LTV 5-year fix at 3.49%. Both deals have no product fees, £500 cashback and early repayment charges (ERCs).
The lender has also made changes to its first-time buyer lending policy, including extending the definition of a ‘close relative’ for gifted deposits, allowing a second charge to be registered against the property to protect the gifted deposit element, and allowing FTBs to apply for a mortgage before they have finished their probation period.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “It’s a really challenging time to be taking that all-important first step on the property ladder, with rising house prices and the difficulties of saving for a deposit.
“We’re fully committed to supporting first-time buyers – we’ve significantly increased our lending in this area this year, and our new mortgage range will enable us to help more people buy their first home.
“Competitive rates, a range of LTVs and £500 cashback could make a big difference to those starting out on their journey as homeowners.
“We’ve also brought our lending policy for first-time buyers in line with our policies for other Owner Occupier borrowers, like accepting FTB applicants who are still in their probation period.
“The same conditions will apply, so we’ll want to see that they’ve previously been employed in a similar role for at least six months, but the change means that we can consider more first-time buyers for a mortgage with us, particularly as we’re seeing lots of people move into new roles with the economy opening up again.”
“And our First Home Saver, which gives a £500 to those saving to get onto the property ladder, is a much-needed boost for those becoming homeowners for the first time.”