News Article Published:
Tuesday, 21 August 2007
Category:
Financial Services
While Scottish Widows Bank already has mortgage products for first-time buyers, it is now marketing to the niche sector of key workers in particular, with a new mortgage which will be in direct competition to the government's Open Market Homebuy scheme.
The new product will be advertised to appeal to 21 to 40-year-old key workers who want to buy their own home, rather than only own a share of it.
Key workers who are either first-time buyers or people wanting to remortgage or obtain a bigger property will be able to access the product and for those whose salaries make it difficult to save up a deposit, the option of buying with 102 per cent LTV is available.
Scottish Widows should be advertising the flexibility of the product range's rates, as it offers two, three and five year fixed rates, stepped fixed rates, a base rate tracker and an offsetting option.
It also offers enhanced income multipliers of up to five times a single key worker's salary, with additional permutations for joint salaries.
Head of product development and marketing Richard Clark commented: "Getting onto the property ladder is an uphill struggle for first time buyers and it isn't getting any easier, particularly for key workers who often don't earn enough to even contemplate being able to buy close to the area where they work.
"We have launched this product to offer key workers an alternative to the existing government scheme. With the government recently announcing that they will not be putting any new money into the Open Market Homebuy scheme, we believe that our product will offer a genuine solution for key workers, including the opportunity to own 100 per cent of their property."
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