Leeds Building Society has launched a savings product specifically designed to support shared ownership mortgage holders by helping them to grow their savings faster and improving their ability to staircase their ownership percentage.
The Shared Ownership Saver offers an interest rate of 6%, helping shared ownership members to increase their ownership percentage on their homes through staircasing.
The government introduced a new shared ownership model in 2021 which makes it easier for borrowers to staircase in smaller 1% increments, encouraging shared owners to grow their equity. This new product from Leeds Building Society aims to support more of its members to staircase their ownership percentage.
The average shared ownership property purchased by the Society’s members is valued at around £287,700. So, to staircase by a 1% increment, the mortgage holder would need to save £2,877. Someone saving £100 per month could reach this goal in two years and three months.
Research conducted by Leeds Building Society at the end of last year showed 60% of respondents who were hoping to buy within the next five years said that shared ownership could help them get on the ladder, and 22% of homeowners felt it would have helped them get on the ladder sooner
The Society has seen a 19% increase in applications for shared ownership mortgages (Jan-May 23 vs. Jan-May 22) in response to the challenging housing market and cost of living crisis.
Matt Bartle, director of products at Leeds Building Society, said: “At Leeds Building Society we continuously look for new ways to help people onto and up the property ladder.
“We are proud to launch this new savings product which is tailored to the unique needs of shared ownership mortgage holders. shared ownership is a great solution to help aspirational homeowners to get a foothold on the property ladder as buyers need a smaller deposit, allowing them to buy sooner than they might otherwise.
“This new savings product launch demonstrates our commitment to helping members achieve their goals faster.”
