Leeds chops the cost of first-time buyer mortgages
Leeds Building Society is aiming support squarely at first-time buyers by cutting rates on a range of its high LTV (loan to value) and Help to Buy mortgages.
High LTV mortgages are those where the borrower is putting down a small proportion of the overall cost of the property as a deposit, such as 5% or 10%, and taking the rest as a mortgage. Help to Buy deals are those where the borrower is purchasing a newly built home under the government’s Help to Buy scheme.
How much is being cut?
The Society has announced up to a 0.33% reduction on its two and five-year 95% LTV range. The products, which come with free standard valuation, include a 2.74% two-year fixed rate up to 95% LTV with a £999 product fee, and two fee-free products, at 3.09% fixed for two years and 3.79% fixed for five years.
Matt Bartle, Leeds Building Society’s director of products, said: “Our mission as a building society is to help people save and have the home they want so we continue to look for ways to help more first-time buyers.
“Our latest high LTV deals will assist homebuyers with smaller deposits, which suits those looking to buy a home for the first time.”
Help to Buy boost
The Society is also reducing rates on its Help to Buy range, which includes two fee-free deals with £500 cashback, by up to 0.23%. The two-year fixed rate is 2.29%, and the five-year option is 2.49%.
Bartle added: “As a Society we have been a long-time supporter of the Help to Buy market and have continued to innovate in this space, becoming the first lender to accept remortgages.
“All of our Help to Buy products remain available for both purchase and remortgage applications as we retain our focus on assisting borrowers not well served by the wider market.”