Leeds Building Society has announced the launch of its new 'Start Mortgage' for first-time buyers, offering borrowers up to 98% LTV and lending up to five times household income.
Features of the product include a minimum income threshold of £30,000, a minimum deposit of £5,000, and a maximum loan size of £500,000.
The five-year fixed rate product offers a rate of 5.65% with no fees and a free standard valuation. It is also available to self-employed applicants, with gifted deposits accepted.
A single or joint applicant with a household income of £49,000 and a deposit of £5,000 could borrow £245,000 to purchase a home worth £250,000.
Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Affordability continues to be one of the biggest barriers facing first-time buyers today. With our new Start Mortgage, we’re combining higher loan-to-value lending with flexible income multiples to better reflect earning potential and housing costs.
“We know there is no one-size-fits-all approach, which is why we’re committed to supporting brokers in finding solutions for their clients. We’re proud to be able to support aspirational buyers in getting a home of their own and keeping them there by following prudent affordability assessments to ensure they aren’t overstretching themselves.”
