Yorkshire Building Society is revealing how savers can boost their savings pot by £12,000 by one of its most popular products.
The high street financial institution is highlighting the benefits linked to its First Home Saver account, which is celebrating its first anniversary.
This particular savings account offers wannabe homeowners the opportunity to save regularly towards their first home deposit.
With a variable interest rate of 4.70 per cent , the account allows customers to deposit up to £500 per month for two years. Savers can access their money once each year without penalty.
The account also permits closure if required, providing flexibility for first-time buyers working towards homeownership.
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Yorkshire Building Society is offering competitive savings deals for those looking to get on the property ladder PAThe First Home Saver account works alongside the mutual’s £5k Deposit Mortgage product. This UK market-first mortgage enables first-time buyers with just £5,000 to be considered for a mortgage of up to £500,000.
Savers who have deposited the maximum £500 each month since the account launched could now have accumulated over £6,150, including interest earned.
This combination of savings and the £5k Deposit mortgage puts homeownership within reach much sooner than many might expect.
New research released by Yorkshire Building Society reveals that 77 per cent of 18-34 year olds save on a monthly basis.
Over a quarter (28 per cent) of these young savers are specifically putting money aside for a house deposit. On average, these first-time buyers are aiming to save a deposit of £68,926.
Young people estimate it will take them approximately five years to achieve their deposit-saving goal.
However, with options like the First Home Saver account and £5k Deposit Mortgage, homeownership could potentially be achieved much sooner than many currently anticipate.
Pete Lewis, senior savings proposition manager at Yorkshire Building Society, said: “Following last year’s launch of our £5K deposit mortgage, we wanted to ensure we also helped people to save and achieve that £5k deposit in the first place.
“Regular savings accounts can help people establish healthy savings habits as well as save for their dreams and goals.
“We’re really proud that a year on from its launch, this new account has helped hundreds of savers get one step closer towards their homeownership dreams.
“Regular savings accounts can help people establish healthy savings habits as well as save for their dreams and goals.
“We’re really proud that a year on from its launch, this new account has helped hundreds of savers get one step closer towards their homeownership dreams.
“As our new research shows homeownership could be achieved a lot sooner than people currently think with regular savings and our £5,000 deposit mortgage.”
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Britons are on the hunt for the accounts with the best savings interest GETTYLauren Ashman, a customer from the Taunton branch who opened the First Home Saver last year, shared her experience.
She shared: “I opened the account on the day it was released. I’ve always liked the idea of regular savers and hearing that there was one specifically for first time buyers really appealed to me.”
“The product is a two-year term and supports getting in the savings habit much more than one that lasts just a year.
“Knowing that I will have £12,000 plus interest after the term is great and will really help me get on the ladder when I’m ready.”