RBS offers new first-time buyer deals

Royal Bank of Scotland’s intermerdiary arm has launched two new first-time buyer products offering a maximum loan-to-value of 90 per cent.

This includes a two-year tracker rate mortgage with an initial rate of 4.79 per cent - made up of the 0.5 per cent Bank of England base rate plus 4.29 per cent - for a maximum loan-to-value of 90 per cent.

With an arrangement fee of £999, brokers say the rate is competitive.

Andy Pratt of Alexander Hall said the move by RBS was very encouraging. “We are hoping it will bring some competition into the market. It doesn’t solve the problem for first-time buyers but it nudges it in the right direction.”

However, first-time buyers can also access a similar but cheaper deal directly through RBS’s branches.

The lender’s branches offer a two-year tracker at 4.69 per cent but with no arrangement fee. The deal is offered exclusively to first-time buyers.

RBS Intermediary Partners has also launched a five year first-time buyer deal with an initial rate of 6.99 per cent for a maximum of 90 per cent loan-to-value. The product is offered exclusively via L&G and has no arrangement fee.

Graham Felstead, director of intermediary mortgages at RBS, said the new products were launched in response to discussions with its intermediary partners.

He said: “We are committed to supporting our intermediary partners with an attractive portfolio of products and excellent standards of service especially in the first-time buyer market.”