Advisers looking to place business with Leek Building Society via Legal & General Mortgage Club will now benefit from access to an exclusive residential product.
The 2-year fixed rate product is available at 95% loan-to-value (LTV) and priced at 5.99%.
Additionally, an early repayment charge of 2% applies in year one and a 1% charge in year two – the product facilitates the purchase of a new build property, a flat, or house, with a 5% deposit.
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “After the end of the Help to Buy scheme last year, the mortgage industry has had to find new ways to support first-time buyers and help them onto the property ladder.
“This competitively priced new product exclusive with Leek Building Society, offers first-time buyers the valuable opportunity to purchase a new-build property, a house, or a flat of their choice, with just a 5% deposit.
“This will allow advisers to help more new buyers make that important first step.”
The minimum residential loan size for the exclusive stands at £150,000, but mortgages can extend to loans of up to £500,000.
The product includes a free valuation and has no completion fee.
With its high LTV ratio, it is designed to help those with smaller deposits, such as many first-time buyers, onto the property ladder.
Nikki Warren-Dean, head of intermediaries at Leek Building Society, added: “This is a fantastic, good news story to help customers get onto the housing ladder and what a great time to introduce this new 95% LTV initiative.
“Please speak to our BDMs to get more information but be mindful that these products have a restricted tranche size and may be withdrawn at short notice.”
