A new to market range of first-time buyer products has been launched by Skipton Building Society following research revealing the difficulty of getting on the property ladder.
This new range includes a suite of new mortgages and £1,500 cashback products, all packaged with supportive home buying extras to help aid FTBs in taking their first steps onto the property ladder.
In addition, the group has also launched a new FTB savings product within the range which pays 5.06 per cent.
Skipton Building Society CEO of home financing, Charlotte Harrison, said: “The challenge for FTBs in particular is urgent, and while it demands coordinated innovation and collaboration, we at Skipton want to do our bit.
“We know it’s all very well highlighting key housing issues, but this doesn’t help anyone if you don’t spend time exploring and investing in the solutions.”
The launch comes in response to the Skipton Group Home Affordability Index which revealed the “stark” reality of securing a home in the UK today.
It found that only one in eight FTBs in Great Britain can purchase the average FTB property in their area.
This falls to just one in 100 for those earning £22,850 or less.
Additionally, almost 80 per cent of potential FTBs have insufficient savings for the deposit needed to get onto the property ladder in their area.
Meanwhile, four in 10 renters are spending 45 per cent or more of their income on essential housing costs, creating a major barrier to saving for a deposit.
Harrison added: “Everyone should have somewhere to call home, but achieving that today is an insurmountable struggle for far too many.
“Today, a clear picture has emerged from Skipton Group’s Home Affordability Index out today showing the enormous struggle facing renters and first-time buyers across the country.
“Which is why, today, I’m pleased to announce our new range of FTB products, to help get more FTBs onto the property ladder.”
The index, which was created in partnership with Oxford Economics, utilises data from across Skipton Group businesses, the Office for National Statistics, the Bank of England, and third-party external sources.
tom.dunstan@ft.com
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