Leeds reduces mortgage rates and increases maximum new build LTVs

Leeds Building Society is increasing its maximum LTV ratios for new build properties and flats, alongside further rate reductions across it residential mortgage range.

Coupled with the enhanced affordability offered by Leeds on properties with EPC ratings of A and B, its lending criteria on new builds has now been further bolstered.

For new builds, the maximum LTV on new cases for standard residential houses will increase from 90% to 95% and the maximum LTV on new build flats will increase from 80% to 85%.

In addition, the maximum LTV for non new build flats will increase from 80% to 95%.

Following the mortgage rate reductions announced earlier this week, Leeds has announced further cuts across its range by up to 16bps.

The largest reduction is to a two-year fixed rate at 65% LTV, reduced to 4.44% at 65% LTV with a £999 fee. The Society has also introduced a new two-year fix at 65% LTV with no fee, available at 4.75%.

Elsewhere in its two-year range, products at 75% LTV have reduced by 15bps, now starting from 4.45% with a £1,499 fee, 4.54% with a £999 fee, and 4.84% fee-free.

All products are available for both purchase and remortgage.

Martese Carton, director of mortgage distribution at Leeds Building Society, said: “Building up a deposit is one of the biggest barriers to home ownership so the changes we have implemented today will offer greater flexibility for our borrowers and will come as good news for many aspirational homeowners as the cost of living continues to bite.

“This is yet another example of the Society backing its words with actions in support of first-time buyers, building on actions we’ve taken such as withdrawing from lending on second residential homes, our pilot of restricting lending on holiday lets and integration with the Experian Boost enhanced credit check system, and the changes we’ve made today will increase our ability to achieve that goal.”