New Mortgage Savings Account

by Mark Johnston

Following a meeting discuss the plight of first time buyers between the housing minister Grant Shapp and industry leaders, Leeds Building Society has announced that it will launch a new product to help first time buyers. The new savings product is designed to help struggling first time buyers onto the housing market.

The northern based building society has designed what they have named the Mortgage Saver account. The savings account is designed to help first time buyers purchase their first home.

The account will pay double the amount of interest of a normal savings account but more importantly they hope it will focus first time buyers to save for their deposits and become a key part of their plan to get onto the property market.

The sales and marketing director at Leeds Building Society Kim Rebecch said: “This product offers first-time buyers an excellent introduction to the mortgage process by encouraging and supporting, through double interest, the process of saving up for a deposit. Furthermore, the double interest is paid in the form of a cashback, which means it can be paid gross. We also include interest earned over the life of the savings account, so the value of the cashback is even higher.”

The building society carried out extensive research to indentify what would help first time buyers. Ms Rebecchi went on to say: “Customers will benefit from regular reviews with qualified mortgage advisers so that they fully understand the amount they can borrow and the costs involved as their circumstances and the market change.”

Recently the Leeds Building Society  launch a new range of mortgages which they say will provide their current and potential new customers looking to switch, an opportunity to fix their mortgage rate ahead of any base rate increases by the Bank of England.

Ms Rebecchi: “These products provide a great opportunity to secure a fixed rate now, combined with certainty of payments and peace of mind,”

The new range makes provision for a wide range of circumstances and those with differing size deposits. The three year fixed rate mortgage comes in three different options. The first is a 75% loan to value version at 3.45% whilst the second has a loan to value of 80% at 3.89%. The final rate of 5.29% is for those with a smaller deposit of 10% as the loan to value is 90%, which is great for first time buyers.

The building society is heralding these mortgages as great for those looking for the security of knowing how much monthly repayments will be over a medium term like three years. This is fantastic for those who are concerned that the base rate may go up soon and want to shield themselves from it but do not want to be tied in for too long.

The real positive about Leeds Building Society is that they allow their customers to overpay by up to 10% each year without incurring any penalty. This is great for those looking to take advantage of the low base rate by paying off their mortgage with the extra cash

Story link - New Mortgage Savings Account

Related stories to : New Mortgage Savings Account