Legal & General Mortgage Club has joined with Leek Building Society to offer broker members access to an exclusive residential product, aimed at first-time buyers.
The mutual offers a two-year fixed-rate product at 95% loan to value, priced at 5.99%. An early repayment charge of 2% applies in year one and a 1% charge in year two.
The product is available for the purchase of a new build property, a flat, or a house, with a 5% deposit.
The minimum residential loan size is £150,000, but mortgages can extend to loans of up to £500,000.
The product includes a free valuation and has no completion fee.
The building society says: “With its high LTV ratio, it is designed to help those with smaller deposits, such as many FTBs, onto the property ladder.”
Legal & General Mortgage Club head of lender relationships Danny Belton adds: “After the end of the Help to Buy scheme last year, the mortgage industry has had to find new ways to support FTBs and help them onto the property ladder.
“This competitively priced new product exclusive with Leek Building Society offers FTBs 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.”
Leek Building Society head of intermediaries Nikki Warren-Dean tells club members: “Please speak to our business development managers to get more information, but be mindful that these products have a restricted tranche size and may be withdrawn at short notice.”
