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Leeds Building Society reduced rate on first time buyer mortgage

It has reduced its five year fixed rate Local Authority Mortgage Scheme (LAMS) mortgage by 0.50%, to 4.99%, which is available up to 95% LTV and it has also launched a three year fixed rate mortgage at 4.29%, also available up to 95% LTV.

The lender said that it has seen a year on year increase in the number of its first time buyers of over 30%. Since the start of the year, the Society helped 1,716 first time buyers purchase their first home, compared to 1,312 in the corresponding period in 2012.

It says that it A Helping Hand initiative makes even more much needed 95% mortgages available to those who can afford the mortgage repayments but are currently unable to provide a large deposit.

Normal lending criteria applies, so only those first time buyers who can comfortably afford to make repayments will benefit. Ten Local Authorities in Leeds, Warrington, Bristol, Blackpool, Hertfordshire, Watford, Three Rivers, North Hertfordshire, Stevenage and Dacorum, place funds with the building society as security, with Leeds then providing these three and five year fixed rate mortgages requiring only a 5% deposit.
 
‘We have offered mortgages throughout the economic downturn and continue to increase lending, particularly to first time buyers, through our shared ownership, shared equity and guarantor mortgages. Between January and April this year we helped over 1,700 first time buyers onto the housing ladder, which is an increase of over 30% from a year earlier,’ said Kim Rebecchi, sales and marketing director at Leeds Building Society.

‘In order to improve our proposition further, we have cut the rate by 0.50% on our five year fixed rate mortgage to 4.99% and launched a new three year fixed rate mortgage from only 4.29%. Both these products, available up to 95% LTV, have discounted fees and a free valuation thereby providing security at an affordable rate,’ she added.

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