Co-operative Bank launches new first-time buyer cashback mortgage

Wednesday, 28 March 2007 12:00

Co-operative Bank has today launched new cashback mortgages aimed at first-time buyers.

The cashback mortgage's features include one per cent cashback to cover stamp duty or other fees first time buyers may incur, a fixed-rate of 6.29 per cent for five years and a guarantor option.

No deposit is needed to take out the mortgage, and Co-operative Bank will lend up to five times buyers' income for graduates and 4.5 times income multiples for other borrowers.

It also comes with a free basic valuation.

"As house prices have continued to rise it is important that the lifeblood of the market - first-time buyers - are given extra help to gain that all important first footing on the ladder," said John Barker, head of mortgages at Co-operative Bank.

"At the Co-operative Bank we believe that new innovative mortgage products such as this should be developed to help alleviate some of the extra worry for first time buyers, by providing them with extra cash to pay for some of the upfront costs associated with home buying such as stamp duty."

The mortgage also includes an annual donation to Climate Care to help tackle global warming so as to offset around one quarter of an average home's carbon dioxide emissions each year for the lifetime of the mortgage.

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