Coventry Building Society is offering an interest rate of 4.00% on its First Home Saver account supporting first time buyers saving up for a deposit for their first home.

First Home Saver has been designed to have no minimum monthly limit, so savers can build a deposit at their own pace. With average UK house prices now at £315,119, first time buyers would need to save over £15,750 for a 5% deposit. The average first time buyer also spends £9,780 on additional upfront costs such as moving, legal fees as well as surveyor, valuation and mortgage fees, followed by furniture (£2,420) and renovation or decoration (£4,210) topping the list of current extra spend.

With the First Home Saver, deposits up to £1,000 can be saved in the account every month for up to three years and, after at least six months of saving, a £500 bonus will be paid to the account holder following the completion on a residential Coventry Building Society mortgage, which is used to buy a first home.

The account can be opened online, over the phone or in a branch and allows for customers to withdraw their funds with 60 days’ notice, or immediately with a charge equal to 60 days’ interest on the amount withdrawn. Relatives of first time buyers can also open the account and receive the £500 bonus when their child, grandchild, niece or nephew buys their first home with a Coventry Building Society mortgage.

Ian Biggs, head of product performance at Coventry Building Society, said: “First time buyers are the lifeblood of the property market, and we want to provide all the support we can to help them realise their dreams. We understand taking that all-important first step on the property ladder can be a challenge with rising house prices and the huge effort made into saving for a deposit.

“Our First Home Saver pays a market leading interest rate of 4.00% for first time buyers with the flexibility to change the amount paid into the account up to a maximum £1,000 a month and a possible £500 reward.

“This account also caters for the bank of mum and dad and other relatives too. Parents will often help their kids get on the property ladder and by doing so, if their child completes on a mortgage with us, they can receive a £500 bonus.”