Back to March 2019

Leeds Building Society launches two year Right to Buy mortgages

Leeds Building Society has launched new two year fixed rate Right to Buy products, as it continues to help more people have the home they want.

The Society will lend 100% of the discounted purchase price, reducing the need for a deposit, and up to 75% of the property value for the purpose of home improvements*.

Highlights include:

  • 2.14% two year fixed rate Right to Buy mortgage up to 75% LTV (loan to value)
  • 2.64% two year fixed rate Right to Buy mortgage up to 75% LTV with £1,000 cashback

Both no-fee products come with a free standard valuation.

Matt Bartle, Director of Products at Leeds Building Society, said: “As a mutual we are built on helping people save and have the home they want. The Right to Buy scheme has been around for almost 40 years and has been instrumental in helping people buy the home they want, with more than 15,000 purchases through the scheme in each of the last five years.

“By lending 100% of the customer’s discounted purchase price the need for a deposit is reduced, removing what can be one of the most significant barriers to home ownership.

“If borrowers intend to make improvements to their property we will lend up to 75% of the value of the home on the open market, allowing people to make their previously rented home feel like their own.”

Right to Buy was introduced in 1980 and gives eligible social housing tenants the right to buy their home at a discount determined by the length of time they’ve been a tenant.

Ends

Notes to Editors

*Subject to the borrower obtaining a letter/deed of postponement from the landlord confirming ranking agreement.

Buyers are able to sell their home at any time after purchasing, but a sliding scale is in place if the property is sold within the first five years. If a property is sold within five years of purchase, the landlord has the right to ask for repayment of all or part of the discount. The amount paid back depends on the value of the home when sold.

If property sold within:Proportion to be repaid:
The first year of purchase 100% of discount will have to be repaid
Second year 80% must be repaid
Third Year 60% must be repaid
Fourth Year 40% must be repaid
Fifth Year 20% must be repaid

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.

Leeds Building Society won the title of Best Shared Ownership Mortgage Lender in the 2018 What Mortgage Awards, its third consecutive year of success in this category.

Leeds Building Society operates throughout the UK and in Gibraltar and has assets of £19.4bn at 31 December 2018 (£18.5bn at 31 December 2017). The Society’s head office has been based in the centre of Leeds since 1886.

 

Key features

2.14% Right to Buy 2 Year Fixed Rate up to and including 30 June 2021

  • Available up to 75% LTV
  • Free standard valuation up to £999
  • No product fee
  • 10% penalty free capital over-repayments permitted each year
  • Tapered early repayment charges, 2 Year – 3/2% until 30 June 2021
  • Initial fixed period followed by 1% SVR discount until 30 June 2024
  • This product is available for purchase and remortgage applications

2.64% Right to Buy 2 Year Fixed Rate with £1,000 cashback up to and including 30 June 2021

  • Available up to 75% LTV
  • Free standard valuation up to £999
  • No product fee
  • £1,000 cashback upon completion
  • 10% penalty free capital over-repayments permitted each year
  • Tapered early repayment charges, 2 Year – 3/2% until 30 June 2021
  • Initial fixed period followed by 1% SVR discount until 30 June 2024
  • This product is available for purchase and remortgage applications
  • Minimum loan size £50,000