The products are both fixed for five years. The fee-free mortgage has a rate of 5.05 per cent and the option with a £999 fee has a rate of 4.95 per cent. Both are for purchase only and offer a free standard valuation.
Early repayment charges apply and start at five per cent in the first year, before falling by one percentage point annually to reach two per cent in the fifth year of the fixed rate period.
In its full year results for 2022, Leeds Building Society credited the first-time buyer segment for its performance which saw its gross mortgage lending rise from £4.4bn to £5bn year-on-year. It said first-time buyers made up around a third of its new lending and that its market share among this borrower type was three times larger than its total mortgage market share.
Jonathan Thompson, senior mortgage manager at Leeds Building Society, said: “We know that saving a deposit is a huge barrier to homeownership for many first-time buyers, and we hope that by launching these two new 95 per cent LTV products we can help even more people achieve their dream of getting onto the property ladder.
“With many people concerned with the ongoing economic uncertainty, we wanted to offer customers certainty with their payments. I’m confident that these products will be very popular, particularly with first-time buyers.”
