Leeds Building Society has launched a new mortgage offering up to 98% LTV to help first-time buyers onto the housing ladder.

The new Start Mortgage, available through the society’s broker panel, allows eligible borrowers to access lending of up to five times their household income, with a maximum loan size of £500,000.

The Start Mortgage needs a minimum deposit of £5,000 and a minimum household income of £30,000.

As an example, Leeds said a single or joint applicant with a household income of £49,000 and a £5,000 deposit could borrow £245,000 to purchase a home valued at £250,000, representing a 98% loan-to-value mortgage.

The rate would be 5.65%, with no completion fee and includes a free standard valuation.

It accepts gifted deposits and is open to self-employed applicants.

Leeds Building Society director of mortgage distribution Martese Carton said: “Affordability continues to be one of the biggest barriers facing first-time buyers today. With our new Start Mortgage, we’re combining higher loan-to-value lending with flexible income multiples to better reflect earning potential and housing costs.

“We know there is no one-size-fits-all approach, which is why we’re committed to supporting brokers in finding solutions for their clients.”