Leeds Building Society Launches Start Mortgage for First-Time Buyers

Leeds Building Society launched the Start Mortgage, a financial product designed to help first-time buyers overcome affordability barriers. The five-year fixed-rate mortgage is set at 5.65% and allows for loan-to-value lending of up to 98%, requiring a minimum deposit of only 2% for properties valued at £250,000 or more.

Eligible borrowers must have a minimum household income of £30,000. The product permits loans up to five times the annual income, with a maximum loan size of £500,000. To qualify for the 2% deposit rate, a minimum deposit of £5,000 is required. The mortgage is available via the society's broker panel and intermediary partners, and it is open to self-employed applicants and those using gifted deposits.

The offering includes a free standard valuation and carries no completion fee. Martese Carton and Matt Bartle, directors at the society, noted that the product uses flexible income multiples and lower deposit requirements to better reflect current earning potential and the challenges first-time buyers face when saving for a home.