Coventry for intermediaries has launched a range of mortgages for first-time buyers that offers up to 95% loan to values, £500 cashback on completion and fee-free options.

The broker-only arm of Coventry Building Society says highlights of the new range includes:

• A 2.45% two-year fixed-rate loan FTB to 31 December 2023 with early repayment charges until 31 December 2023, at 90% LTV, with no product fee, and £500 cashback.
• And a 3.49% five-year fixed-rate deal FTB to 31 December 2026 with early repayment charges until 31 December 2026, at 95% LTV, with no product fee and £500 cashback.

The lender has also made changes to its FTB lending policy, bringing it into line with policies for its other owner-occupier applicants. 

It says the changes include extending the definition of a “close relative” for gifted deposits, allowing a second charge to be registered against the property to protect the gifted deposit element, and allowing FTBs to apply for a mortgage before they’ve finished their probation period. 

Coventry Building Society head of intermediary relationships Jonathan Stinton says: “It’s a really challenging time to be taking that all-important first step on the property ladder, with rising house prices and the difficulties of saving for a deposit. 

“We’re fully committed to supporting FTBs – we’ve significantly increased our lending in this area this year, and our new mortgage range will enable us to help more people buy their first home. 

“Competitive rates, a range of LTVs and £500 cashback could make a big difference to those starting out on their journey as homeowners.

“We’ve also brought our lending policy for first-time buyers in line with our policies for other owner-occupier borrowers, like accepting FTB applicants who are still in their probation period. 

“The same conditions will apply, so we’ll want to see that they’ve previously been employed in a similar role for at least six months, but the change means that we can consider more first time buyers for a mortgage with us, particularly as we’re seeing lots of people move into new roles with the economy opening up again.”

Last month, the mutual launched a First Home Saver savings account aimed at helping FTBs, and family members, put aside up to £1,000 a month for up to three years to build up a deposit. If they then take out their first mortgage with the lender, they get a £500 bonus on completion.