Leeds Building Society has unveiled a new shared ownership mortgage product aimed at helping first time buyers.
It is priced at5.99%, fixed up to and including 30 November 2015.
It is available up to 95% of the borrower’s share, with a maximum overall loan to value of 75%.
There is no higher lending charge, no completion fee and a £199 booking fee.
It also comes with a free standard valuation up to £335, while free in-house legal services are available for standard re-mortgages.
There are tapered early repayment charges of 4% of the amount redeemed in year one, 3% in year two and 2% in year three.
“We are all well aware of the difficulties facing first time buyers buying a home. They can often struggle to meet the full asking price or their current income is insufficient to support a full mortgage,” said Phil Coombes, Leeds Building Society’s head of intermediary sales.
“This shared ownership product facilitates that first step, and provides a starting point to staircase up to full home ownership as earning potential increases.”
Coombes claimed the new deal would be ideal for clients who have saved for a deposit but cannot buy a property in their own right.
He added: “There is no doubt that this product will prove attractive to those clients who are ready to make the first step into home ownership.”