Leeds BS unveils Help to Buy London mortgages

Leeds Building Society will launch its first Help to Buy London mortgages from on Monday 1 February.

The society is among the first lenders to join the new Government scheme at launch and expects strong demand from London purchasers.

Help to Buy London aims to support more people in the capital to buy their first home and follows the original Help To Buy equity scheme, launched almost three years ago.

Borrowers in the capital can put down a 5% deposit and obtain an interest-free loan from the Government of up to 40% of the property’s value, against 20% in Help to Buy One.

Leeds Building Society’s Help to Buy London mortgage deals are:

Two-year fixed rate mortgage at 1.79% with a £799 fee.

Five-year fixed rate mortgage at 2.45% with a £199 fee.

Both come with a free valuation.

Director of business development Martin Richardson said: “We’re releasing details of our products early in order to help our intermediary partners start the process and better support borrowers.

“We encourage efforts to help more people – including first-time buyers – to have the homes they want and look forward to continuing the success of our involvement in Help to Buy One in England, Scotland and Wales."

Richardson added: “This latest development of the scheme in London makes Help to Buy a practical solution in the capital, where the average house price is almost 18 times the average salary.”