A new shared ownership mortgage product has been unveiled by Leeds Building Society .
It is hoped the plan, which boasts a rate of 5.69 per cent for two years, can provide assistance to first-time buyers (FTBs) eager to enter the property market.
Kim Rebecchi, sales and marketing director at Leeds, explained the problems facing those looking to get their foot on the first rung of the housing ladder are well known.
Ms Rebecchi noted the incomes of many FTBs are currently insufficient to enable them to support a full mortgage, while this group might also find it difficult to stump up the total asking price of a dwelling.
She stated: “This shared ownership product facilitates that first step and provides a starting point to staircase up to full home ownership as earning potential increases.”
Included in the new arrangement is a maximum borrower share of 95 per cent, while the two-year product also has an overall maximum loan-to-value of 75 per cent.
The agreement might therefore be ideal for customers who are trying to put money aside in order to afford a deposit, but do not have the financial means to purchase an abode in their own right, Ms Rebecchi added.
