£1,000 carrot to save for mortgage

Clydesdale Bank today launches a savings account offering first-time buyers up to £1,000 cash back. The Regular Home Saver account targets those saving monthly towards a deposit on a home and allows savers to vary payments.

The bank, one of a handful offering 95 per cent loan-to-value mortgages, said the account requires a 200 minimum monthly deposit and 40 days' notice for withdrawals. Cash-back of 500 is available to those with a 5 per cent deposit and taking a Clydesdale mortgage and 1,000 to those with a 10 per cent deposit, provided at least 12 consecutive monthly payments are made into the account. However, the interest paid tracks the Bank of England base rate, currently a record low of 0.5 per cent.