Leeds Building Society has launched a new mortgage offer with up to 98% LTV to help first-time buyers enter the housing market.
The new Start Mortgage, available through the association’s broker panel, gives eligible borrowers access to loans of up to five times their household income, with a maximum loan size of £500,000.
For the Starter Mortgage, a minimum deposit of €5,000 and a minimum household income of €30,000 are required.
For example, Leeds said that 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 house worth £250,000, representing a 98% mortgage.
The rate is 5.65%, with no completion fees and including a free standard valuation.
It accepts donations and is open to self-employed applicants.
Martese Carton, mortgage distribution director at Leeds Building Society, said: “Affordability remains one of the biggest barriers facing first-time buyers today. With our new Starter Mortgage, we combine 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 and that is why we want to support brokers in finding solutions for their customers.”