Leeds Building Society, which this week announced record half year results, has launched its first set of products under the Government’s Help to Buy Equity Loan scheme.
Leeds is offering a 2.99% 2 Year Fixed Rate deal, and a fees assisted option at 3.29%. Both are available up to 75% LTV, have no higher lending charge and allow 10% capital repayments each year. Furthermore, there is a free standard valuation up to £335 for the fees assisted deal.
The criteria for the Government’s Help to Buy Equity Loan scheme sees buyers offered an equity loan for 25 years of between 10% to 20% of the property value, with a minimum deposit from the customer of 5%. The maximum loan provided by the lender is 75%, and new build properties can be purchased from a participating housebuilder up to a value of £600,000 via a maximum loan of £450,000.
Kim Rebecchi, Leeds Building Society Sales and Marketing Director said, “We already offer “A helping hand” onto the housing ladder by working in partnership with a number of Local Authorities to provide much needed 95% mortgages to those people who can afford the mortgage repayments, but are currently unable to provide a large deposit. This is possible through a combination of the Local Authority placing funds into a ring fenced interest bearing account with the Society as security and Leeds Building Society providing a very competitive mortgage that requires only a 5% deposit.