"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."
- Martese Carton, director of mortgage distribution at Leeds BS
Leeds Building Society has launched a new range of mortgages and made improvements in assessing how much borrowers can afford to repay which it says will enable it to offer first-time buyers up to £66,000 more on average.
The Income Plus mortgages incorporate adjustments by the Society to give a more realistic view of what borrowers can afford to repay every month.
Aspiring homeowners with a minimum household income of £40,000 could be able to borrow up to 5.5 times their earnings, compared to 4.5 times on its 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% LTV, including new build houses (new build flats at 85% LTV).
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.
They form part of new range of first-time buyer products from the Society which has also created a first-time buyer affordability calculator to identify the additional lending that may be available.
Rates on the seven Income Plus mortgages range from 4.40% at 75% LTV to 5.15% at 95% LTV. All of the mortgages are fixed for five years and include a standard home valuation survey costing up to £999.
Martese Carton, director of mortgage distribution at Leeds Building Society, 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.
“Understanding the pressures the intermediaries are facing, we are proud to launch our new product along with a dedicated affordability calculator to make supporting the needs of their clients as straightforward as possible.”
