Offering an interest rate of 6%, it helps shared ownership members grow their savings faster
Leeds Building Society has launched a savings product specifically designed to support shared ownership mortgage holders.
The mutual’s shared ownership saver, which offers an interest rate of 6%, helps shared ownership members to grow their savings faster, enhancing their ability to staircase their ownership percentage.
“At Leeds Building Society, we continuously look for new ways to help people onto and up the property ladder,” said Matt Bartle (pictured), director of products at Leeds Building Society. “We are proud to launch this new savings product, which is tailored to the unique needs of shared ownership mortgage holders.
“Shared ownership is a great solution to help aspirational homeowners to get a foothold on the property ladder as buyers need a smaller deposit, allowing them to buy sooner than they might otherwise. This new savings product launch demonstrates our commitment to helping members achieve their goals faster.”
The savings product is only available to customers who have a Leeds Building Society shared ownership mortgage. It has a minimum balance of £100 and a maximum of £20,000 plus accrued interest credited to the account. The product does not mature and does not have a final deposit date.
The government introduced the new shared ownership scheme in 2021, making it easier for borrowers to staircase in smaller 1% increments, encouraging shared owners to grow their equity.
According to Leeds, the average shared ownership property purchased by its members is valued at around £287,700. So, to staircase by a 1% increment, the mortgage holder would need to save £2,877, and those saving £100 per month could reach this goal in two years and three months.
Leeds said the launch of the new savings product, as well as the expansion of its range of shared ownership mortgages in May, demonstrated its commitment to supporting the shared ownership model, a scheme the building society believed was a possible solution to the struggle of many aspiring homeowners to get into the property ladder.
Research conducted by Leeds Building Society at the end of last year showed that 60% of respondents who were hoping to buy within the next five years said that shared ownership could help them get on the ladder, and 22% of homeowners felt it would have helped them get on the ladder sooner.
The mutual has also seen a 19% increase in applications for shared ownership mortgages in the first five months of this year compared to the same period last year.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
