Leeds Building Society launches 5% deposit mortgage with cashback deal
The deals are available from 14 April.
This includes a two-year fixed purchase deal up to 95% LTV with £250 cashback on completion with a rate of 5.55%.
There is also a two-year fixed purchase and remortgage option up to 90% LTV at 5.1% and two-year fixed purchase and remortgage product up to 65% LTV at 4.42%.
The mortgages come with a free standard valuation and zero completion fees.
Capital overpayments of 10% are allowed each year and there are tapered early repayment charges of 2.5% in the first year and then 1.5% in the second year.
Jonathan Thompson, senior mortgage manager at Leeds Building Society, said the mutual continued to see “strong demand” for high LTV mortgages and the company was “focused on helping borrowers with smaller deposits”.
He added: “Last year about one in three of all our new mortgages went to first-time buyers so we want to build on that success as we work towards our purpose of putting homeownership within reach of more people.
“As the 95% LTV is likely to appeal to those taking their first steps onto the property ladder we’ve added cashback at completion, which we know is a time when money can be tight with lots of costs due at the same time.”
Thompson said that supporting first-time buyers was important for the mutual and this group was the “lifeblood of a healthy housing market”.
“But we’ve not forgotten homebuyers and remortgagors further up the ladder and have refreshed our rates at lower LTVs too,” he added.