The First Home Saver savings account aims to help first time buyers save a deposit faster as mortgage lenders tighten their criteria and leave those looking for their first home in the cold.

The account is for those aged between 16 and 35 and will pay a variable rate of eight per cent. In addition to the high interest rate, unlike other Abbey savings accounts, the First Home Saver does not allow any partial withdrawals.

And, unlike similar accounts, although a mortgage interview with Abbey is compulsory, there are no penalties for choosing a non-Abbey mortgage.

Commenting on the latest addition to Abbey’s product range, executive director of retail, Alison Brittain said: “Abbey is committed to helping first time buyers get on the property ladder. We are one of the few ladders to have remained active in the mortgage market throughout the credit crunch.

“The best value deals are available to borrowers who have a deposit. By helping first time buyers save towards a first home, we are re-establishing the link between savings and a mortgage – and in so doing helping first time buyers to get more competitive, more affordable mortgages.”

© Fair Investment Company Ltd