Leeds Building Society confirms details of first HTB London mortgages
The first HTB London mortgages from Leeds Building Society are launched on Monday, 1st February.
The Society is among the first lenders to join the new Government scheme at launch and expects strong demand from London purchasers.
HTB London aims to support more people in the capital to buy their first home and follows the original Help To Buy equity scheme (HTB1), launched almost three years ago.
In recognition of the higher property prices in the capital, borrowers can put down a 5% deposit and obtain an interest-free loan from the Government of up to 40% of the property’s value (compared to 20% in HTB1).
Leeds Building Society’s HTB London mortgage deals are:
- Two year fixed rate mortgage at 1.79% with a £799 fee
- Five year fixed rate mortgage at 2.45% with a £199 fee
Both come with a free valuation.
“The London scheme goes live on Monday and we’re releasing details of our products early in order to help our intermediary partners start the process and better support borrowers,” said Martin Richardson, Leeds Building Society’s Director of Business Development.
“We encourage efforts to help more people – including First Time Buyers – to have the homes they want and look forward to continuing the success of our involvement in HTB1 in England, Scotland and Wales.
“This latest development of the scheme in London makes Help to Buy a practical solution in the capital, where the average house price is almost 18 times the average salary*.
“Affordable housing in London has typically relied on shared ownership and HTB London complements our extensive range of shared ownership mortgages, providing additional choice for consumers.
“In addition to shared ownership and higher LTV (loan to value) traditional mortgages, we offer our award-winning Welcome Mortgage, with a competitive fixed rate and the choice of three or six months at the start of the home loan where the borrower pays 0% interest.”
Leeds Building Society has been part of the original HTB equity scheme since summer 2013 and last year became the first lender to accept remortgage applications from HTB equity borrowers.
Notes to Editors
*17.8% - Average house price in London £531,000 (ONS House Price Index October 2015); Median average annual salary in London £29,868.80 (ONS ASHE 2015 provisional figures).
Leeds Building Society received the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2016, the third consecutive year the Society has won this category, as well as the award for ‘Product Innovation (Lenders)’.
The Society also has been named ‘Best Regular Savings Account Provider’ for the second consecutive year by independent consumer advice website Savings Champion.
Leeds Building Society has 67 branches throughout the UK, Gibraltar and Ireland and assets of £12.7bn (as at 30th June 2015). The Society has operated from the centre of Leeds since 1886.