by Mark Johnston
Leeds Building Society Increases Lending!
Leeds Building Society is one of the UK’s top ten building societies. The Society is owned by its members and intends to remain so.
It seems that have continued to demonstrate the benefits of independent mutuality by offering very competitive savings and mortgage products and a range of other services to meet the needs of all of their members.
The building society has released data to show that its new residential lending increased by 20 per cent to £921 million therefore doubling their market share in the six months up to 30 June 2013.
Net residential lending was also 26 per cent more than during the first half of 2012, increasing from £335 million to £423 million.
These figures also showed that 30 per cent of the building societies lending was within the first time buyer sector and resulted in over £280 million of completions, this in turn has helped almost 3,000 members to purchase their first home.
Most of this lending it seems is thanks to the Bank of England’s Funding for Lending scheme, which the mutual has tapped for £25 million which the lender has used to reduce the amount it charges mortgage customers and therefore meaning they pass on the cheaper cost of funding.
Chief Executive, Peter Hill, said “Leeds Building Society continues to provide support home ownership. New loans rose to £921 million, which continues to show our commitment to the mortgage market, following our strong performance throughout 2012.”
The building society has also stated that they intend to increase new lending further this year and have therefore recently launched a unique Welcome Mortgage range.
The Welcome Mortgage range, offers borrowers a combination of flexibility and certainty over a 3 or 5 year term. This range is available up to 90 per cent loan to value (LTV) and members have the option of paying 0 per cent on the first 3 or 6 months of their mortgage, with the remaining monthly payments at a fixed rate for up to 3 or 5 years.
These products come with a £199 booking fee but no completion fee, a free standard valuation is available up to £335 and ten per cent capital repayments are allowed each year without penalty.
These mortgages are open to anyone apart from those wanting to remortgage or an interest only deal and they will be particularly attractive to first time buyers.
Kim Rebecchi, Leeds Building Society’s Sales and Marketing Director said, “We launched our 3 and 5 year Welcome Mortgages earlier this month and the feedback we have received has been very positive.”
Some mortgage experts believe that Leeds building society is not promoting these deals as market leading mortgages, instead it seems they are providing a unique way to pay back the loan for buyers who may be initially short of cash.
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