According to the lender, the new range will include a 2.45% 2 Year Fixed First-Time Buyer product to 31.12.23 with ERCs until 31.12.23, 90% LTV, no product fee, and £500 cashback as well as a 3.49% 5 Year Fixed First-Time Buyer product to 31.12.26 with ERCs until 31.12.26, 95% LTV, no product fee and £500 cashback. Both products are available for first-time buyers only.
The lender has also made changes to its first-time buyer lending policy, bringing this in line with the policies for its other Owner-Occupier applicants. The changes include 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 first-time buyers to apply for a mortgage before they’ve finished their probation period.
Jonathan Stinton, (pictured) Head of Intermediary Relationships at Coventry Building Society, says: “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.”
