Leeds Building Society has launched a savings product which is designed to help first-time buyers on to the housing ladder.
The product aims to encourage people to save for a mortgage by offering double interest with cashback of up to £1,000 when the savings are used for a mortgage with the society. The gross rate offered is 1.5 per cent a year.
The minimum investment required is £20 and the maximum is £50,000, or £100,000 for joint accounts.
Borrowers are given two penalty free withdrawals each year.
LBS sales and marketing director Kim Rebecchi says: “This product offers FTBs an excellent introduction to the mortgage process by encouraging and supporting, through double interest, the process of saving up for a deposit.
“Furthermore, the double interest is paid in the form of a cashback, which means it can be paid gross. We also include interest earned over the life of the savings account, so the value of the cashback is even higher.”