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Leeds reduces first time buyer mortgage in North Hertfordshire by up to 0.50%

Leeds Building Society has reduced the rate on its 5 Year Fixed Rate Local Authority Mortgage Scheme (LAMS) mortgage with North Hertfordshire District Council by 0.50%, to 4.99%, which is available up to 95% LTV. Leeds has also launched a 3 Year Fixed Rate Mortgage at 4.29%, also available up to 95% LTV. The Society is making these improvements to help more first time buyers (FTBs) in the North Hertfordshire area onto the housing ladder. The Society’s “A Helping Hand” initiative makes even more much needed 95% mortgages available to those who can afford the mortgage repayments but are currently unable to provide a large deposit. First-time buyers are able to secure a property valued at up to £190,000 with just a five per cent deposit, as North Hertfordshire District Council underwrites the other 20 per cent of the deposit.

Leeds Building Society has seen a year on year increase in the number of its FTBs of over 30%. Since the start of the year, the Society helped 1,716 FTBs purchase their first home, compared to 1,312 in the corresponding period in 2012. In terms of market share, stats from the CML show a 20.5% increase in the number of FTB cases during January and February this year. Leeds Building Society’s comparison during January and February 2013 is a 79.4% increase (899 in 2013 compared to 501 in 2012).

Kim Rebecchi, Leeds Building Society Sales and Marketing Director said, “We have offered mortgages throughout the economic downturn and continue to increase lending, particularly to FTBs, through our shared ownership, shared equity and guarantor mortgages. Between January and April this year we helped over 1,700 FTBs onto the housing ladder, which is an increase of over 30% from a year earlier.

“In order to improve our proposition further, we have cut the rate by 0.50% on our 5 Year Fixed Rate Mortgage to 4.99% and launched a new 3 Year Fixed Rate Mortgage from only 4.29%. Both these products, available up to 95% LTV, have discounted fees and a free valuation thereby providing security at an affordable rate.”

Cllr Bernard Lovewell, North Herts District Council’s portfolio holder for housing, said: “This is more good news for those looking to buy their first home. Many hard-working people who earn enough to meet monthly mortgage repayments are prevented from entering the property market due to the large deposits required. We are pleased to be working with Leeds Building Society to assist people who find themselves in that situation, and this rate reduction is a further helping hand.

Sector Treasury Services works closely with local authorities and supports them in launching their scheme. Cecilie Booth, Director at Sector Treasury Services, said: “This scheme has been operating successfully in many parts of the UK for over two years and is helping first time buyers to buy their first home with a lower deposit than usually needed. This innovative scheme has already helped almost 2000 people or couples to buy their first home, is stimulating the local housing market and benefitting the wider economy.”

Ends

Notes to Editors

For more information, customers can call into their local Leeds Building Society branch or call the Society’s mortgage hotline, on 08450 540 994, where qualified mortgage advisors are available 7 days a week from 8am to 8pm. Alternatively, visit the website at http://www.leedsbuildingsociety.co.uk/mortgages/helping-hand-mortgage.html

Local Authority Mortgage Scheme North Hertfordshire

Key Features:

3 Year Fixed Rate Mortgage

  • 4.29% fixed up to and including 30 June 2016
  • Available up to 95% loan to value
  • No Higher Lending charge
  • Free standard valuation up to £335
  • No Completion Fee
  • 10% capital repayments allowed each year without incurring an early repayment charge
  • £199 Booking Fee
  • Tapered early repayment charges of 4% of the amount redeemed in year 1, 3% in year 2 and 2% in year 3
  • Maximum loan of £190,000

5 Year Fixed Rate Mortgage

  • 4.99% fixed up to and including 30 June 2018
  • Available up to 95% loan to value
  • No Higher Lending charge
  • Free standard valuation up to £335
  • No Completion Fee
  • 10% capital repayments allowed each year without incurring an early repayment charge £199 Booking Fee
  • Tapered early repayment charges of 5% of the amount redeemed in years 1 and 2, 4% in year 3, 3% in year 4 and 2% in year 5.
  • Maximum loan of £190,000

Leeds Building Society has assets of £10.3bn (as at 31 December 2012) and 67 branches throughout the UK, Gibraltar and Ireland. The Society has operated from the centre of Leeds since 1886.