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Leeds BS cuts rates to help FTBs; MPowered adds 90 per cent LTVs – round-up

  • 01/09/2023
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Leeds BS cuts rates to help FTBs; MPowered adds 90 per cent LTVs – round-up
Leeds Building Society has lowered rates across 26 mortgage products catered to first-time buyers.

This includes a five-year fixed shared ownership mortgage at 95 per cent loan to value (LTV) with no fee and a rate of 6.14 per cent. 

Also within the shared ownership range is a two-year fix at 90 per cent LTV, with a £999 fee and a 5.99 per cent rate. 

There is a five-year fixed standard mortgage at 95 per cent LTV with a £999 fee, priced at 5.86 per cent. 

All of the above products offer a free standard valuation. 

Jonathan Thompson, senior mortgage manager at Leeds Building Society, said: “In the first half of this year, 49 per cent of all new borrowers to Leeds Building Society were first-time buyers. The changes we have made to our mortgage range show our continued support for those looking to step onto the property ladder. 

“As a key lender in the affordable housing sector, we are proud to make improvements to our shared ownership mortgage range. 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. 

“The changes we’ve made to the mortgage range reflect our ongoing support for first-time buyers, with the aim of putting homeownership within reach of more people.” 

Leeds Building Society said between January and May this year, it had received a 19 per cent rise in applications for shared ownership compared to the same period last year. 

Research conducted by the mutual at the end of last year also found that 60 per cent of people who wanted to buy in the next five years felt shared ownership would get them onto the ladder, while 22 per cent said it would be a faster route to homeownership. 


MPowered Mortgages launches 90 per cent LTVs 

MPowered Mortgages has released a range of 90 per cent LTV products and reduced the rates across two and three-year fixes. 

It has also extended the cashback boost incentive on its three-year fixed mortgages. 

The 90 per cent LTV options include a two-year fix fee-free deal with a rate of 6.74 per cent, and an option with a £1,295 fee priced at 6.33 per cent. 

There are also three and five-year fixed options and £500 cashback for purchases or £1,000 cashback for remortgages. 

The range comes with a free valuation and a minimum loan size of £50,000. 

Rates have also been cut by up to 0.05 per cent across all three-year fixes and some two-year fixes. 

The cashback offered on three-year fixes has been improved to offer £500 for purchases and £1,000 for remortgages. 

MPowered Mortgages has also introduced a new £0 arrangement fee option on its three-year fixed remortgages. 

Emma Hollingworth, distribution director at MPowered Mortgages, said: “With mortgage rates and the cost of living continuing to rise, getting on the ladder is becoming harder for first-time buyers as finances are being squeezed further. In the coming year, there is an expectation that an increasing number of buy-to-let landlords will choose to sell their properties. This situation presents pockets of opportunities for first-time buyers to enter the market, as these properties are likely to re-emerge at lower prices.  

“We’re aware of the barriers that both these first-time buyers, and other homemovers, are continuing to face when saving for deposits. Therefore, we are pleased to expand our prime residential offering with a new range of 90 per cent LTV products, designed to support homebuyers and help them purchase a property that best meets their criteria for space and location.”  

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