Leeds launch first-time buyer plus mortgages providing up to 5.5 times salary income multiples
Leeds Building Society has released a mortgage that will lend up to five-and-a-half times income multiples to first-time buyers, potentially boosting loan amounts by £66,000.
The Income Plus mortgages are available to first-time buyers with a minimum household income of £40,000 and offer higher loan-to-income ratios of up to 5.5 times their earnings, compared to 4.5 times on the society’s standard lending.
Leeds Building Society expects these changes will allow the average first-time buyer to borrow a maximum of £356,000 through Income Plus, compared to £290,000 under its standard lending.
Single and joint borrowers, including self-employed, are eligible for Leeds Income Plus mortgages, provided they have a 5% deposit. Applicants will need a 15% deposit to purchase a new-build flat. They can also be combined with the society’s existing green affordability benefit, which enhances the affordability of a new-build home with an Energy Performance Certificate of A or B.
Aaron Strutt, product director of Trinity Financial, says, "It is good to have another lender offering enhanced mortgage income multiples to first-time buyers. Halifax and Barclays are two of the biggest lenders offering enhanced income multiples to first-time buyers.
“By combining a high loan to value and loan to income with generous affordability modelling, Leeds is helping first-time buyers overcome some of the main barriers facing would-be homeowners: earnings being outstripped by house prices and the difficulty of saving a large deposit.”
What are the Leeds first-time buyer plus mortgage rates?
Rates on the seven Income Plus mortgages range from 4.40% for borrowers with a 25% deposit, rising to around 5.20% with a 5% deposit. The rate increases depending on the size of your deposit. All mortgages are fixed for five years and include a standard home valuation survey. Arrangement fees range between £0 and £999.
Call Trinity Financial on 020 7016 0790 to secure a first-time buyer mortgage or book a consultation
The information contained within was correct at the time of publication but is subject to change.
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