Alliance & Leicester is launching a new mortgage aimed specifically at first-time buyers.
The First Step Mortgage is designed to help first-time buyers overcome stamp duty, which can often form an obstacle.
The mortgage provides buyers with £1,500 cashback for loans worth between £25,000 and £100,000 and £2,500 cashback for those worth between £100,001 and £250,000.
It also carries a three-year fixed interest rate of 5.99 per cent.
"Alliance & Leicester's research findings show that the cost of stamp duty is a real issue for first time buyers," said Stephen Leonard, director of
mortgages, savings and investment products at Alliance & Leicester.
"The new mortgage product from Alliance & Leicester called The First Step Mortgage will go some way to help first time buyers with the cost of stamp duty and should appeal to those who also want a competitive rate."
Research released yesterday by the building society revealed that 90 per cent of first-time buyers will be paying stamp duty by 2008, rising to a
predicted 95 per cent by 2011.Click here if you're a first-time buyer.
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