Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. 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 mortgage product offering up to 98% loan-to-value (LTV) for first-time buyers. The Start Mortgage is available through the society’s broker panel and is designed to help more people onto the property ladder.

The Start Mortgage allows eligible borrowers to access lending of up to five times their household income, with a maximum loan size of £500,000. Applicants must have a minimum deposit of £5,000 and a minimum household income of £30,000. Leeds Building Society provided an example where a single or joint applicant with a household income of £49,000 and a £5,000 deposit could borrow £245,000 to purchase a home valued at £250,000, representing a 98% LTV mortgage.

The mortgage rate is set at 5.65%, with no completion fee, and includes a free standard valuation. The product accepts gifted deposits and is open to self-employed applicants.

This new offering may be of interest to letting agents and inventory clerks monitoring trends in first-time buyer activity and mortgage availability, as it could influence demand in the rental and sales markets.