The exclusive product is a two-year fix at 95% LTV and priced at 5.99%
Legal & General Mortgage Club has partnered with Leek Building Society, allowing its advisers access to the lender’s exclusive residential product.
The product – a two-year fix at 95% loan-to-value (LTV) and priced at 5.99% – facilitates the purchase of a new build property, a flat, or house, with a 5% deposit. It has an early repayment charge of 2% in year one and a 1% charge in year two.
The minimum residential loan size stands at £150,000, but mortgages can extend to loans of up to £500,000. The product includes a free valuation and has no completion fee.
With its high LTV ratio, the product, which is only available to members of the Legal & General Mortgage Club, is designed to support borrowers with smaller deposits, such as many first-time buyers.
“After the end of the Help to Buy scheme last year, the mortgage industry has had to find new ways to support first-time buyers and help them onto the property ladder,” Danny Belton (pictured), head of lender relationships at Legal & General Mortgage Club, commented.
“This competitively priced new product exclusive with Leek Building Society, offers first-time buyers the valuable opportunity to purchase a new-build property, a house, or a flat of their choice, with just a 5% deposit. This will allow advisers to help more new buyers make that important first step.”
Nikki Warren-Dean, head of intermediaries at Leek Building Society, said that this was fantastic news for customers trying to get on to the housing ladder.
“What a great time to introduce this new 95% LTV initiative,” she remarked. “Please speak to our BDMs to get more information but be mindful that these products have a restricted tranche size and may be withdrawn at short notice.”
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