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Leeds launches Right to Buy products

Leeds launches Right to Buy products

Leeds Building Society has launched two fixed rate Right to Buy mortgages.

The products include a two-year fixed rate at 2.14 per cent and another two-year fix at 2.64 per cent, running up to June 30, 2021.

Both deals come with free standard valuation up to £999 and no product fee. Overpayments of up to 10 per cent are allowed each year, with tapered early repayment charges of 3 per cent, then 2 per cent until 30 June 2021.

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The 2.64 per cent fixed rate also comes with £1,000 cashback upon completion.

The Right to Buy scheme helps eligible council and housing association tenants in England to buy their home with a discount of up to £108,000.

Lees stated it will lend 100 per cent of the discounted purchase price, and up to 75 per cent of the property value for the purpose of home improvements.

Buyers can sell their home at any time after purchasing, but a sliding scale is in place if the property is sold within the first five years.

If a property is sold within five years of purchase, the landlord has the right to ask for repayment of all or part of the discount.

Matt Bartle, director of products at Leeds Building Society, said: "As a mutual we are built on helping people save and have the home they want.

"The Right to Buy scheme has been around for almost 40 years and has been instrumental in helping people buy the home they want, with more than 15,000 purchases through the scheme in each of the last five years.

"By lending 100 per cent of the customer’s discounted purchase price the need for a deposit is reduced, removing what can be one of the most significant barriers to home ownership.

"If borrowers intend to make improvements to their property we will lend up to 75 per cent of the value of the home on the open market, allowing people to make their previously rented home feel like their own."

Nick Morrey, mortgage technical manager at John Charcol, said whilst the rates were not market leading, the products might be suited to those who have no upfront funds to put down and would like cashback.

He said: "There are better two-year Right to Buy deals out there. Halifax has a 1.82 per cent rate with no product fee and £200 flat rate valuation fee, while Nationwide has a 1.59 per cent rate, although it comes with a £1,000 product fee."