Zero-deposit mortgage for FirstBuy Teachers

The Dorset based mutual is one of a handful of lenders prepared to offer an 80% loan to value mortgage which means if an applicant achieves the maximum 20% equity loan from the government and the developer they will not need a deposit.

The deal, via Mortgage Intelligence and the Legal & General Mortgage Club, is available for the FirstBuy scheme and is a 3-year variable rate mortgage at 5.99%.

The product is subject to an £899 arrangement fee and £99 application fee.

The extension to FirstBuy is intended to help 16,500 aspiring homeowners get onto the property ladder and is one of a range of measures announced by the government to help developers build and complete new housing projects.

Teachers Building Society has a long history of supporting such affordable home ownership schemes and specialises in lending to teachers.

Alan Gravett, head of sales and marketing at Teachers Building Society, said: “Zero-deposit mortgages have a dubious reputation but this is where the financial prudence and security of a mutual like Teachers can come into its own.

“We understand our market and are keen to help teachers realise their dream of home ownership.”

Gravett added: “We are committed to helping our brokers in a market which is very challenging for them to help first-time buyers get a toe hold on the property ladder and that’s why we have supported FirstBuy since it began.

“It’s a fantastic scheme which we are delighted to see extended until 2014 and will make it a key component of our range of options to help first-time buyers.”