Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Leeds Building Society Launches 98% LTV Mortgage for First-Time Buyers

Leeds Building Society has introduced a new five-year fixed mortgage product at 98% loan-to-value (LTV), specifically targeting first-time buyers. The product is available to single or joint applicants with a minimum income of £30,000 and requires a deposit of at least £5,000.

The launch of this mortgage product is part of Leeds Building Society’s efforts to address the challenges faced by first-time buyers, particularly the difficulty of saving for a large deposit. The Start Mortgage range is designed to help buyers overcome two major hurdles: raising a deposit and accessing sufficient borrowing. The product allows lending up to five times household income and has a maximum loan size of £500,000.

Leeds Building Society’s director of mortgage distribution, Martese Carton, stated that the purpose behind the new product is to put homeownership within reach of more people. The mutual has responded to feedback from brokers, who report that many aspiring first-time buyers struggle more with saving for a deposit than with affording monthly repayments.

The new mortgage is intended to support more would-be buyers and provide a realistic route onto the housing ladder. The product also features lower minimum income requirements to make it accessible to a wider range of applicants.

Recent years have seen several 95%-plus LTV mortgage launches, reflecting a growing industry focus on supporting first-time buyers. Leeds Building Society’s new product combines a high LTV with competitive salary requirements and income multiples, as well as a higher maximum loan size.

For letting agents and inventory clerks, the introduction of higher LTV mortgage products may influence demand in the rental and sales markets, as more first-time buyers could be able to access homeownership.