A range of new mortgages and improvements in assessing borrowers affordability to repay will result in Leeds Building Society offering first-time buyers up to £66,000 more on average.
The Income Plus mortgages could enable aspiring homeowners with a minimum household income of £40,000 to borrow up to 5.5 times their earnings, compared to 4.5 times on the society’s standard lending.
It expects these changes will result in the average first-time buyer being able to borrow a maximum of £356,000 through Income Plus compared to £290,000 under its standard lending.
Single and joint borrowers, including those who are self-employed, are eligible for Income Plus mortgages which are available at up to 95% loan to value, including new build houses (new build flats 85% loan to value).
They can also be combined with the society’s existing green affordability benefit which enhances the affordability on a new build home with an Energy Performance Certificate of A or B.
Income Plus will be available via the society’s intermediary partners only, through its MSO platform Mortgage Hub.
Rates on the seven Income Plus mortgages range from 4.40% at 75% LTV (£999 product fee) to 5.15% (£999 product fee, £500 cashback) and 5.19% (no product fee, no cashback) at 95% LTV. All of the mortgages are fixed for five years and include a standard home valuation survey costing up to £999.
Commenting on the latest launch, Leeds BS director of mortgage distribution Martese Carton said: “The launch of Income Plus and other improvements we’re making will come as welcome news for many of our intermediary partners across the UK who work really hard to support the increasing number of first-time buyers facing affordability constraints.
“By combining a high loan-to-value and loan-to-income with generous but responsible affordability modelling, it supports intermediaries in helping overcome some of the main barriers facing would-be homeowners: earnings being outstripped by house prices and the difficulty of saving a large deposit.”
“Our partners can offer clients advice built on certainty and access enhanced availability of lending options, as we demonstrate that every yes matters – to intermediaries, to first-time buyers and to us as a lender.”
