Leeds Building Society has introduced its first set of Help to Buy products.
The mutual is offering a 2.99% two-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.
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’s 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.
“In the first half of this year new loans at the Society rose to £921 million and over 30% of our lending, £280 million of completions, has helped almost 3,000 customers onto the housing ladder. We are now very pleased to announce the launch of our first products under the Government’s Help to Buy Equity Loan scheme and are confident they will help even more people, both first time buyers and re-mortgagers, to buy their own home.”
