The product enables lending up to five times household income and is open to borrowers earning a minimum of £30,000 and with a maximum loan size of £500,000.
The Start Mortgage is available on a five-year term with a rate of 5.65%, and the minimum deposit required is £5,000.
The product also has a free standard valuation and no fee payable upon completion.
Leeds Building Society will accept self-employed applicants and gifted deposits on its Start Mortgage.
The product is available through Leeds Building Society’s intermediary partners, and the mutual said it would help first-time buyers by addressing affordability challenges through the combination of a high LTV and its income requirements.
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For example, a single or joint applicant with a household income of £49,000 and £5,000 deposit could borrow £245,000 for a home worth £250,000.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Affordability continues to be one of the biggest barriers facing first-time buyers today. With our new Start Mortgage, we’re combining higher loan-to-value lending with flexible income multiples to better reflect earning potential and housing costs.
“We know there is no one-size-fits-all approach, which is why we’re committed to supporting brokers in finding solutions for their clients. We’re proud to be able to support aspirational buyers in getting a home of their own and keeping them there by following prudent affordability assessments to ensure they aren’t overstretching themselves.”
David Hollingworth, associate director at L&C Mortgages, added: “The desire to buy a first home remains strong but prospective first-time buyers are all too aware of the challenges that remain. Being able to borrow enough and demonstrate affordability whilst also saving a sizeable deposit is far from easy.
“Products like the new Leeds Start Mortgage offer alternative options for advisers and their customers. Combining a small deposit requirement of just £5,000 with a realistic approach to affordability helps to tackle those challenges head on. That could make a real difference for aspiring first-time buyers and turn the hope of homeownership into a genuine possibility.”
