UK building societies providing support to FTBs


According to the price comparison site, mutuals are spearheading new financing products aimed at FTB’s entry into the housing market

Building societies in the UK have been providing significant support to FTBs – a group for whom affordability has reached its most challenging level in decades, according to data from

According to the price comparison site, mutuals are spearheading new financing products aimed at FTB’s entry into the housing market.

Key offerings include Skipton Building Society’s Track Record mortgage, Yorkshire Building Society’s £5,000 deposit mortgage, and a collaborative initiative between Leeds Building Society and Experian, designed to help boost consumer credit scores.

Comparative analysis suggests that building societies generally offer more competitive rates than high street banks for FTBs, especially in two- and five-year fixed mortgages at both 90% and 95% LTV ratios.

While the seven biggest high street banks – Barclays, Halifax, HSBC, Lloyds Bank, NatWest, RBS, and Santander – typically provide lower average rates, these might not represent the best value when considering all associated costs and incentives, Moneyfacts said.

Building societies offer competitive packages for FTBs and continue to support those who are the life blood of the mortgage market, commented Rachel Springall, finance expert at Mutuals which offer two- or five-year fixed rate deals available to FTBs with a 5% or 10% deposit currently charge less on average compared to the market average in the same space.

She said: Nevertheless, the biggest high street banks offer some of the lowest fixed rates in the same sectors, and indeed seven banks are priced lower, on average, than mutuals. High street banks conventionally have more margin to price their mortgages lower, but the lowest rate deal may not be the best choice when all the costs and incentives associated with the mortgage are included.

Saving money on the upfront cost of a mortgage is incredibly important for FTBs who may have exhausted their cash on a deposit, legal fees and moving costs, she added.

She said: The key challenge for FTBs is affordability, with interest rates higher than they may have expected this year, and affordable housing remaining in short supply.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply