Back to May 2015

More choice for Help to Buy remortgagors from Leeds Building Society

Leeds Building Society has launched two new remortgage products for homeowners who bought their properties with assistance from the Government’s Help to Buy (HTB) Equity scheme.

The Society was the first lender to accept remortgage applications from existing HTB Equity homeowners and now has extended its range by adding two fees assisted deals just for remortgage – a two year fixed rate HTB product at 2.44% and a five year fixed rate HTB product at 3.14%.

Both are available up to 75% loan to value (LTV) and come with fees assisted legal services for standard remortgages.

These two new deals are in addition to the Society’s existing HTB mortgages, which are available for remortgage as well as home purchase:

  • A two year discount HTB mortgage at 1.99%
  • A two year fixed rate HTB mortgage at 2.34%
  • A five year fixed rate HTB mortgage at 2.99%

In common with the new fees assisted mortgages, these are available up to 75% LTV.

All Leeds Building Society’s HTB mortgages and remortgages come with a low £199 fee and free valuation and are available through intermediaries.

“The first homeowners who bought under the HTB Equity scheme are now coming to the end of their mortgage deals and have their first opportunity to switch to a better deal,” said Martin Richardson, Leeds Building Society’s General Manager – Business Development.

“Mortgage rates are at historic lows at present and the average two year fixed rate mortgage available now is lower than when the Government launched the scheme in March 2013 so borrowers can save themselves some money by switching to a more competitive deal.

“Minimising the upfront costs of our HTB remortgages assists the type of customer the scheme was introduced for and, unlike some lenders, Leeds Building Society does not differentiate between first time buyers and home movers and our main HTB range is available to both.”

HTB Equity homeowners can remortgage to a competitive rate with Leeds Building Society and retain their existing loan size, subject to valuation, keeping the Government equity loan.

Alternatively, they can choose to redeem the Government equity loan as part of their remortgage up to 90% LTV and buy the property outright, using any one of the Society’s competitive mortgages available up to 90% LTV.

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.

Introduced Only 2 Year Fees Assisted Help to Buy Fixed Rate mortgage at 2.44% up to and including 31st July 2017:

  • 2.44% available up to 75% LTV
  • £199 Arrangement Fee
  • No Completion Fee
  • Free standard valuation on properties worth up to £500,000
  • Fees assisted legal services for standard remortgages
  • 10% capital repayments are allowed each year

Introduced Only 5 Year Fees Assisted Help to Buy Fixed Rate mortgage at 3.14% up to and including 31st July 2020:

  • 3.14% available up to 75% LTV
  • £199 Arrangement Fee
  • No Completion Fee
  • Free standard valuation on properties worth up to £500,000
  • Fees assisted legal services for standard remortgages
  • 10% capital repayments are allowed each year

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.

The first Help to Buy Equity borrowers bought their homes in May 2013, and between then and September 2014 more than 31,500 properties were purchased through the scheme (HCA, Housing Statistics Table November 2014).

Awards won by Leeds Building Society in the past 12 months include being named ‘Innovator of the Year’ at the Moneywise Magazine Mortgage Awards 2014 for our Welcome Mortgage. This allows borrowers to pay 0% interest for the first few months of their term to free up cash to help them settle into their new home.

The Society scooped the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2015, in addition to being named ‘Best Intermediary Lender’, both for the second consecutive year, and also received the award for ‘Best Use of Technology (Lenders)’.

Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.1bn (as at 31st December 2014). The Society has operated from the centre of Leeds since 1886.