The West Brom has added two new mortgage products to its range which are suited to first time buyers with smaller deposits.
Borrowers can now apply to the building society for a mortgage at a loan to value (LTV) ratio of 95%, choosing from either a fixed or discounted variable rate over a two year term.
Products are for new purchasers or home movers, come with a free first standard valuation and there are no booking or completion fees to pay. The Society will lend up to a maximum loan size of £250,000 within this particular LTV bracket.
Its two year fixed rate is 3.59% (up to 95% LTV) and the two year discounted variable rate is 3.19% (up to 95% LTV), based on a 1.05% discount from the West Brom’s standard variable rate (SVR).
David Taylor, Head of Products for the West Brom, said: “We have a proud history of supporting first time buyers in realising their ambition of securing a home of their own. Our maximum LTV has now increased from 90% to 95%, opening up the opportunity of becoming a home owner to those borrowers with a smaller deposit.
“Our products are competitively priced, plus we have kept things easy to understand and plan for by removing additional costs such as booking and completion fees.
“The recent decision by the government to abolish stamp duty for the majority of first time buyers is also a welcome boost in terms of making home ownership potentially more attainable.”
As part of the range review, the West Brom has also reduced rates on its existing two year discounted variable mortgages for new purchasers or home movers by 0.15% across all LTVs. Rates now start at 1.59% (up to 65% LTV), based on a 2.65% discount from SVR.
Reductions of up to 0.15% have also been made on discounted variable products for customers who are remortgaging.
The West Brom is the UK’s seventh largest building society based in West Bromwich in the West Midlands. Mortgages are available directly from the Society or via selected intermediary partners.
Mortgage products revert to the West Brom’s SVR at the end of the fixed rate or discounted term, which is currently 4.24%.
Looking to buy your first home? Check out our handy first time buyers guide to see how the process works.