Shared ownership boost from L&G and Leeds
The fixed rate mortgage is available on loans up to 75% loan to value with a maximum borrower share of 90% and comes with a free valuation up to £335.
The deal is available up to and including 31 January 2015 at a rate of 5.14% with a booking fee of £199 and a completion fee of £300.
And it has early repayment charges starting at 3% in the first year followed by 2% in the second year.
The mortgage club has also reduced its 2-year fixed rate shared ownership product, which has a maximum borrower share of 95% and LTV of 75%, from 5.79% to 5.59%.
This product has a £199 booking fee, £200 completion fee, £500 cash back on completion, a free valuation up to £335 with the same early repayment fee structure.
Martyn Smith, head of mortgage products at Legal & General Network, said: “By speaking with a number of our shared ownership specialist brokers we identified a gap for a competitive product at 90% LTV. “Once again Leeds Building Society has delivered exactly what we were looking for and at the same time they have also reduced the rate on our 95% LTV product which is already proving popular.”
Phil Coombes, Leeds Building Society’s head of intermediary sales, said: “We are all well aware of the difficulties facing first time buyers buying a home. They can often struggle to meet the full asking price or their current income is insufficient to support a full mortgage. This shared ownership product facilitates that first step and provides a starting point to staircase up to full home ownership as earning potential increases.”
Coombes added: “Our new 2-year product at 5.14% is ideal for customers who have saved for a deposit but cannot buy a property in their own right. We are also pleased that the rate on the existing 2-year fixed rate has been reduced from 5.79% to 5.59%.
“There is no doubt that these products will prove attractive to those customers who are ready to make the first step into home ownership.”