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 £100 and £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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