Abbey launches First Home Saver account
First time buyers can save for a deposit with a new account from Abbey.
Abbey has launched a new savings account aimed at prospective property buyers attempting to raise a deposit for their first home.The First Home Saver account is available exclusively to savers aged 16 to 35 depositing between £100 and £300 a month by standing order.
It offers a variable rate of eight per cent AER and there are no charges for withdrawals.
When savers close their account they will be required to take a mortgage interview with Abbey, although there is no penalty for choosing a mortgage from another provider.
Alison Brittain, executive director of retail at the bank, said: "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."
Moneyfacts.co.uk suggested recently that first time buyers could benefit by putting off making property investments.
The website said that as well as saving more money for a deposit, which will allow them to get a lower loan to value mortgage, they may also see prices fall further.
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