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Leeds Building Society launches unique 0% deals and only 10 year HTB mortgage

Unique Help to Buy (HTB) mortgages with an introductory 0% rate and fixed terms up to 10 years are being launched by Leeds Building Society in partnership with Barratt Developments.

The Society is continuing to innovate in the mortgage market with the only 10 year fixed rate Help to Buy Equity mortgage currently available - as well as Help to Buy versions of its award-winning Welcome Mortgage, which allows borrowers to pay 0% interest for up to six months at the start of their mortgage.
These deals include:

  • The only 10 year fixed rate HTB mortgage currently on the market, at 4.99%
  • A 10 year fixed rate HTB version of the Society’s award-winning Welcome Mortgage, which gives borrowers the choice of paying 0% interest for either the first three months or six months
  • A five year fixed rate HTB version of the Welcome Mortgage, with the choice of paying 0% interest for either the first three months or six months
  • A two year fixed rate HTB version of the Welcome Mortgage, paying 0% interest for the first three months

“We have seen strong demand for our Help to Buy mortgages since these were launched last summer,” said Martin Richardson, Leeds Building Society’s General Manager – Business Development.

“We’re delighted to be able to combine what Help to Buy offers with the unique features of our award-winning Welcome Mortgage, in association with Barratt Developments, to give borrowers even more choice when buying a new build home.

“The cost of an HTB Welcome Mortgage is in line with our standard HTB mortgages¹ but gives the borrower smaller repayments in the first months as they settle into their new home, freeing up cash for them to personalise it and make it feel their own.

“Borrowers have the security of fixing their monthly repayments for a term to suit them and from the start also are paying the capital and reducing their total loan.”
Adrian MacDiarmid, Head of Mortgage Lender Relations at Barratt Development plc, said: “We're delighted to join forces with Leeds Building Society to offer such an innovative package to our customers on an exclusive basis.

“Homebuyers often find the first few months after buying a home the most financially-challenging with, for example, the need for new furniture - so the idea of a short interest-free period is very attractive, as is the peace of mind that the unique fixed 10 year option provides.”

All Leeds Building Society Help to Buy mortgages come with a free valuation on properties up to £200,000. Above that value, the borrower pays the difference in valuation fee.

The Help to Buy deals in partnership with Barratt Developments are available for all three Government equity schemes – in England, Wales and Scotland.

Ends

Notes to Editors

To discuss a new case with one of our mortgage development team, mortgage introducers should go to www.leedsintroducer.co.uk to find details of their nearest Business Developer contact.

Barratt exclusive 10 year fixed rate Help to Buy mortgage

  • Help to Buy 10 Year Fixed Rate up to and including 31 July 2024 at 4.99%, available for a  95% mortgage on an 80% share of the property value
  • £199 Booking Fee
  • £300 Completion Fee
  • Tapered early repayment charges of 6/6/5/5/5/5/4/4/3/2% of the amount redeemed
  • 10% capital repayments are allowed each year
  • Free valuation on properties up to £200,000

Barratt exclusive 10 year fixed rate Help to Buy Welcome mortgage

  • Help to Buy 10 Year Fixed Rate up to and including 31 July 2024, available for a  95% mortgage on an 80% share of the property value – with three months at 0% and then 5.16%, or six months at 0% and then 5.34%
  • £199 Booking Fee
  • No Completion Fee
  • Tapered early repayment charges of 6/6/5/5/5/5/4/4/3/2% of the amount redeemed
  • 10% capital repayments are allowed each year
  • Free valuation on properties up to £200,000

Barratt exclusive 5 year fixed rate Help to Buy Welcome mortgage

  • Help to Buy 5 Year Fixed Rate up to and including 31 July 2019, available for a  95% mortgage on an 80% share of the property value – with three months at 0% and then 4.13%, or six months at 0% and then 4.40%
  • £199 Booking Fee
  • No Completion Fee
  • Tapered early repayment charges of 5/5/4/3/2% of the amount redeemed
  • 10% capital repayments are allowed each year
  • Free valuation on properties up to £200,000

Barratt exclusive 2 year fixed rate Help to Buy Welcome mortgage

  • Help to Buy 2 Year Fixed Rate up to and including 31 July 2016, available for a  95% mortgage on an 80% share of the property value – with three months at 0% and then 2.88%
  • £199 Booking Fee
  • No Completion Fee
  • Tapered early repayment charges of 3/2% of the amount redeemed
  • 10% capital repayments are allowed each year
  • Free valuation on properties up to £200,000

¹ Interest paid over the product term is calculated to two decimal places and provides the nearest cost equivalent between the Welcome Mortgage and Standard range. Illustration below calculated on a £100,000 mortgage.

Help to Buy
Leeds Building Society launched its first mortgages under the Government’s Help to Buy Equity Loan scheme in August 2013.
The criteria for the Government’s Help to Buy Equity Loan scheme sees buyers offered an equity loan for 25 years of between 10% to 20% of the property value, with a minimum deposit from the customer of 5%. The maximum loan provided by the lender is 75%, and new build properties can be purchased from a participating housebuilder up to a value of £600,000 via a maximum loan of £450,000.

Welcome Mortgage

Leeds Building Society launched its unique Welcome Mortgage in July 2013 to offer borrowers the option of paying 0% on the first three or six months of their mortgage, with the remaining monthly payments at a fixed rate for up to five years. The cost to the borrower is broadly comparable to the equivalent standard fixed rate mortgages offered by the Society.

The Society’s innovative product was recognised at the Mortgage Finance Gazette Awards, with the ‘Innovation Award for Lenders’, and in the Moneynet Personal Finance Awards, with the award for ‘Most innovative personal finance provider’.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £11.2bn (as at 31 December 2013). The Society has operated from the centre of Leeds since 1886.