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Leeds launches 95% FTB scheme

Mortgage Solutions
Written By:
Posted:
May 10, 2010
Updated:
May 10, 2010

Leeds Building Society has launched two shared ownership deals aimed at first-time buyers (FTBs), available up to 95% of the borrower’s share, up from the previous limit of 90%.

The mortgages have a maximum 75% overall loan-to-value, with customers able to choose from a fees-assisted fixed rate product or a variable rate with £250 cashback.

Martin Richardson, general manager of marketing and business development at the lender, said: “These shared ownership products facilitate the first step, with only a small deposit required, and provide a starting point to staircase up to full home ownership, as earning potential increases.” There is a five-year variable deal at 6.64% with a £298 fee, and a three-year fix at 7.89% with a £199 fee.

David Hollingworth, head of communications at London & Country Mortgages, said: “Where Leeds has been good is that it has maintained its leadership and support of the shared equity and ownership side of the market, while other lenders have been less keen to do so. While the rates do look high, this deal is about improving criteria by offering an increase in the borrower’s share.

“Any affordable housing option will be a big appeal to FTBs struggling to put together a deposit.

Plus brokers will be happy to see anything that helps their clients. It also indicates a slight growing of confidence and appetite from lenders.”

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