It has a rate of 5.99 per cent and an early repayment charge of two per cent applies in the first year, before dropping to one per cent in the second.
There is a minimum loan of £150,000 up to £500,000 and the mortgage can be used against new-build properties, a flat or a house. A free valuation is offered and there is no completion fee.
The product is only available through members of Legal and General Mortgage Club.
Danny Belton, head of lender relationships at Legal and General Mortgage Club, said: “After the end of the Help to Buy scheme last year, the mortgage industry has had to find new ways to support first-time buyers and help them onto the property ladder.
“This competitively priced new product exclusive with Leek Building Society, offers first-time buyers the valuable opportunity to purchase a new-build property, a house, or a flat of their choice, with just a five per cent deposit. This will allow advisers to help more new buyers make that important first step.”
Nikki Warren-Dean (pictured), head of intermediaries at Leek Building Society, added: “This is a fantastic, good news story to help customers get onto the housing ladder and what a great time to introduce this new 95 per cent LTV initiative. Please speak to our business development managers (BDMs) to get more information but be mindful that these products have a restricted tranche size and may be withdrawn at short notice.”
Coventry BS adds BTL products
Coventry Building Society has release two-year fixed rates for new buy-to-let and portfolio landlord borrowers between 50 and 75 per cent LTV.
There are fee-paying and fee-free options and select remortgages have a cashback option of £350, as an alternative to the mutual’s remortgage transfer service. This service involves the mutual handling a borrower’s legal requirements when transferring to a new rate.
Of the newly launched products, there is a two-year fix at 50 per cent LTV with a £1,999 fee, and a fee-free option at the same LTV tier with a rate of six per cent. Both are available for purchase and remortgage.
Jonathan Stinton, head of intermediary relationships at Coventry Building Society, said: “Adding these products to our buy-to-let range is all about giving brokers and their clients more choice.
“There’s strong demand for shorter term rates as well as five-year rates, so we’re launching these products to sit alongside our existing five-year deals and give our intermediary partners the options they need.”
