In London, a 5% deposit for an average Semi-detached property means saving £12,249*. With everyday living costs spiralling and low interest rates paid on savings accounts, first time buyers are finding it increasingly difficult to save enough for a deposit to get their foot on the property ladder. Leeds & Holbeck Building Society is offering them a lifeline with the launch of two 100% mortgages on Thursday 2nd October 2003.
The first is a 3-year fixed rate loan at 5.49% until 1st January 2007, and the second is a variable rate based on the Society's Standard Variable Rate plus 0.50% for 3 years. Both deals include no application or completion fees, free mortgage payment protection insurance for six months and no higher lending fees. The fixed rate option also includes a £250 cashback.
In line with its responsible lending policy, the Society has introduced specific lending criteria for the 100% loans.
Highlights of the 100% 3-year fixed rate mortgage includes
* Rate of 5.49% until 1st January 2007
* £250 cashback
* No higher lending fee
* No extended lock-ins
* No application fee
* Tapered early repayment charge of 6 months interest in year 1 reducing to 4 months in year 3
* 6 months free mortgage payment protection insurance
Highlights of the 3-year variable rate mortgage includes
* Tracks the Society's variable rate plus 0.50% (current rate of 5.99%)
* No higher lending fee
* No extended lock-ins
* No application fee
* No insurance requirements
* Early repayment charge of 6 months interest payable for the first 3 years.
* 6 months free mortgage payment protection insurance
Commenting on the new loans, Head of Marketing & PR, Tony Burdin said, "It is an increasingly difficult time for first time buyers, so these loans should help them enter the housing market.
The loans will sit alongside our 'First Steps' guarantor mortgage for first time buyers, which enables close family members to help young professionals purchase their first home."
For further information, customers can visit any branch of Leeds & Holbeck, call Leeds & Holbeck’s mortgage helpline, on 08450 50 50 62 or visit www.leeds-holbeck.co.uk.
