Leeds City Council has joined forces with Leeds Building Society to help first-time-buyers in Leeds.
They have today jointly launched the ‘A helping hand’ initiative which will make 95% mortgages available to residents within the Leeds area 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 with the mutual as security and Leeds Building Society providing a 95% LTV mortgage.
“We have operated in the city since 1875 and are a major employer in the region,” said Peter Hill, chief executive of Leeds Building Society. “Therefore, Leeds and its residents are very important to the Society and I am delighted that we are working in partnership with the City Council for the benefit of people in Leeds. As well as the obvious synergies, we also share the same ambition. We aim to be Britain’s most successful building society and the Council’s ambition is to make Leeds the best city in the UK.
“We have offered mortgages throughout the economic downturn and continue to increase lending, particularly to first-time-buyers, through our shared ownership, shared equity and guarantor mortgages. In the first half of this year, new loans rose to £769m, which represents double our market share. Over a quarter of these mortgages have helped almost 2,500 first-time-buyers purchase their first home.
“We support the local communities around our branches and we have a national presence, so we know that other Local Authorities will follow Leeds City Council and form a similar partnership with us in the near future.”
The new 95% mortgage is a five-year fixed rate at 5.49%, with discounted fees and a free valuation.
The Council made a deposit into a ring fenced, interest bearing account with the Leeds and will only incur any costs if the mortgage lender suffers any loss.
Leader of Leeds City Council Councillor Keith Wakefield added: “We are delighted to be announcing this exciting and innovative new partnership with Leeds Building Society to help local first-time buyers secure their first homes.
“Everyone knows how difficult it is for young people to finance a large deposit to buy their first house. This scheme will help first-time buyers get on the first rung of the property ladder by reducing this lump sum to more manageable levels. It will hopefully make a real difference to people’s lives and also provide a boost to the Leeds housing economy.”