The product has been created to help borrowers grow their savings faster increasing their ability to staircase their ownership percentage. The shared ownership saver offers customers a 6 per cent interest rate, which the lender says empowers shared ownership members to increase the ownership percentage on their homes.
It’s a launch that the building society believes displays its commitment and support for the shared ownership model. Also Leeds anticipates that the scheme could be a potential solution for those struggling to afford to buy a house via traditional mortgage routes.
Increase in shared ownership applications
The average value of a shared ownership property that has been bought by a Leeds Building Society customer is valued at around £287,700. As a result, to increase a share in a house by 1 per cent, the mortgage holder would need to save £2,877.
Someone who is saving £100 per month would take 2 years and 3 months to reach this amount.
In a survey complied by the building society last year, it was found that 60 per cent of those asked were aspiring to buy a property within the next five years.
Indeed, almost a quarter (22 per cent) of current homeowners said that the model would have help them to buy a home sooner than they did.
Leeds has seen a year-on-year increase of 19 per cent in shared ownership applications between January and May this year.
‘New ways to help people’
Matt Bartle, director of products at Leeds Building Society, said: “At Leeds Building Society we continuously look for new ways to help people onto and up the property ladder. We are proud to launch this new savings product which is tailored to the unique needs of shared ownership mortgage holders.
“Shared Ownership is a great solution to help aspirational homeowners to get a foothold on the property ladder as buyers need a smaller deposit, allowing them to buy sooner than they might otherwise. This new savings product launch demonstrates our commitment to helping members achieve their goals faster.”
