Leeds targets first-time buyers with 95% mortgage

Leeds targets first-time buyers with 95% mortgage

Leeds Building Society has introduced a 95 per cent loan-to-value (LTV) mortgage, aimed at first-time buyers.

The five-year, fee-free mortgage is offered at a fixed rate of 4.30 per cent and includes a free standard valuation, up to £999.

Matt Bartle, head of product and pricing at Leeds Building Society said the lender is seeking to meet the needs of home buyers often underserved by the wider market.

He added: “This latest deal will assist home buyers with smaller deposits, suiting people looking to take the first step onto the property ladder.

"It also complements our suite of products, which includes Help to Buy and Shared Ownership mortgages, and an existing two-year 95 per cent LTV product.

“Fixed rates remain the most popular choice and a longer-term deal for five years enables borrowers to plan their future outgoings”.

The new mortgage allows up to 10 per cent capital repayment each year, penalty-free and early repayment charges are tapered. 

Ray Boulger at John Charcol commented: “It’s not the most competitive deal on the market, but it’s good to see an increase in the number of 95 per cent deals available, compared with the situation years ago.

“We’ve now got a good choice of 95 per cent deals, which demonstrates how successful the government’s help to buy scheme has been. It got lenders back into the 95% market, which is really good news for borrowers.”