Housebuilder Bovis Homes continues to be at the forefront of the drive to help homebuyers get moving - with the rate for the Woolwich mortgage that is part of its exclusive 10% deposit scheme now dramatically reduced by Barclays.
The 4.99% two-year fixed rate on 'The Perfect 10' has been slashed to 3.79% with an arrangement fee of £999, providing a welcome boost for buyers with little deposit available who are looking for manageable monthly payments.
Bovis Homes launched the innovative package in association with Barclays almost a year ago, including other special features such as free, three-year unemployment protection insurance and £500 towards a buyer's legal fees. The deal is available on any new Bovis Home at all of the Company's developments across England and Wales.
Commenting on the new 1.2 percentage point rate cut, Chief Executive David Ritchie said: "In the current climate housebuilders can't just be about bricks and mortar, and they can't sit back while homebuyers battle to raise the funds for a new home.
"We've been striving to find ways to help them move and this big cut in the initial two-year rate offers homebuyers a superb opportunity to get in there and snap up their dream home."
"The Perfect 10 has always been a great solution for people struggling to get a deposit and now it is even better. We want to buck the lending trend that has left many people frozen in or out of the market - and hopefully this rate cut will bring the bit of sunshine people need to get them moving."
Andy Gray, Head of Mortgages for Barclays, said: "Slashing the rate enables more buyers to purchase a new home with just a 10 per cent deposit at one of the most affordable rates since the recession. The deal also gives a measure of protection for customers, Barclays and Bovis Homes and is testament to our commitment to get lending at 90 per cent levels on the right track but in a way which is sustainable in the long term."
A recent Home Builders Federation report suggested that the average first-time buyer would need to save a prohibitive deposit of just over £37,000 to buy a £155,000 starter home. If the buyer qualified for The Perfect 10 mortgage package then they would need a deposit of £15,500 to get a new Bovis Home for the same price and then have monthly mortgage payments for the first two years of £720.25 on their mortgage of £139,500
After two years the rate for The Perfect 10 reverts to a lifetime tracker at base +2.99%, which equates to just 3.49% at today's Barclays Base Rate.
Scott Curtis, Group PR and Communications Manager, Bovis Homes.
Tel: 01242 662675; firstname.lastname@example.org