Leeds Building Society has launched a new mortgage offering up to 98% LTV to help first-time buyers get on the housing ladder.
The new Start Mortgage programme, available through the community’s panel of brokers, allows eligible borrowers to take out loans of up to five times their household income, with a maximum loan size of £500,000.
The initial mortgage requires a minimum deposit of £5,000 and a minimum household income of £30,000.
For example, Leeds said a single or joint applicant with a household income of £49,000 and a deposit of £5,000 could borrow £245,000 to buy a home worth £250,000, representing a mortgage with a 98% loan-to-value ratio.
The rate will be 5.65%, no completion fee and includes a free standard evaluation.
It accepts gifted deposits and is open to self-employed applicants.
Martis Carton, Mortgage Distribution Director at Leeds Building Society, said: “Affordability remains one of the biggest barriers facing first-time buyers today. With our new Start Mortgage programme, we are combining higher loan-to-value lending with flexible income multiples to better reflect earning potential and housing costs.
“We know that there is no one-size-fits-all approach, which is why we are committed to supporting brokers in finding solutions for their clients.”
