Abbey welcomes first-time buyers with 8% savings account

Abbey welcomes first-time buyers with 8% savings account

Abbey has launched a new type of account aimed at helping those saving for a deposit for their first home.

The First Home Saver account is available to potential first-time buyers aged between 16 and 35.

It pays a variable rate of 8% in return for the commitment to save for a deposit but does not allow partial withdrawals.

Applicants will need to be able to put away between A?100 and A?300 per month by standing order.

Unlike similar accounts aimed at those wanting to get a foot on the property ladder, savers are not obliged to use Abbey for a mortgage, once they are ready to make their purchase.

The attractive rate of return means they will be required to attend a mortgage interview with the bank but are free to go elsewhere for a home loan.

Abbey’s, executive director of retail, Alison Brittain, comments that the best mortgage deals are available to borrowers who have a deposit and the new account should help re-establishing the link between saving and securing a mortgage.

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