Legal & General Mortgage Club has announced two mortgage updates with Leeds Building Society, including a 95 percent loan to value residential product.
From today (February 5), members will have access to the 95 per cent LTV residential product until April 30, 2021.
It will start with a 3.09 per cent two-year fixed rate, on a maximum loan value of £300,000, reverting to a 1 per cent discount on its standard variable rate, which is currently 4.69 percent, until the end of April 2024.
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said the company had a strong relationship with Leeds Building Society and was "excited to work with them to further strengthen our development in these areas of the market, bringing exclusive products to our key partners".
Alastair McKee, managing director of property finance specialists, One77 Mortgages, said the 95 percent LTV product was not a market leader, but it was an encouraging sign of things to come.
He said: "It is good to see a lender jumping back into the market at 95 percent. It is a confidence boost, especially with current uncertainty about Brexit.
"It is for purchases only and not new builds, but that a building society has come back is a good sign."
Applicants for this semi-exclusive mortgage will be offered free valuations, no product fees and be allowed to make 10 per cent penalty free capital over-repayments each year.
From February 8, members of the mortgage club will also have access to Leeds Building Society’s Holiday Let product until May 31, 2024.
This has a fixed rate of 2.74 per cent with a maximum LTV of 70 per cent and a maximum loan value of £500,000. The product is available for purchase and remortgage applications and has a fee of £999.
