Abbey has re-entered the 100 per cent mortgage market with a new product set to be launched on 13 June.
The new deal has a maximum loan to value of £500,000 and requires no deposit. The range includes two, three and five year products and there are no higher lending charges.
Abbey managing director for intermediaries Ricky Okey says: “With the average age of a first time buyer pushing 34 years old, we know that many people are increasingly frustrated at their inability to get on the property ladder. Through no fault of their own, many first time buyers have not been able to save for a deposit, but are very reluctant to keep paying rent, which they feel is just wasted money. Likewise, divorcees can often find themselves starting out again financially.”
He adds: “We wanted to develop a product which helps people who are struggling to get onto the housing ladder. Given that the average price of a house in the UK is now well above the £200,000 mark, it was important to us that we offer people the opportunity to take out a sufficient size loan without demanding a deposit.”
According to Okey, Abbey was last in the 100 per cent market in the early 1990s.