Key points –

1. Launch of ‘Reach’ Mortgages by Leeds Building Society: This new range of mortgage products is designed to help people, especially first-time buyers, who have smaller deposits or do not qualify for standard mortgage products due to their credit scores.
2. Flexible Mortgage Options and Credit Score Support: The Reach Mortgages offer various fixed-rate options (two-year, three-year, and five-year) and cater to high loan-to-value ratios (80%-95% LTV).
3. Additional Financial Assistance and Inclusive Lending Approach: The Society introduced the Home Deposit Saver account, offering a £500 bonus to support homebuyers in saving for a deposit.

In a move aimed at making home ownership more accessible, Leeds Building Society has unveiled its latest initiative: the ‘Reach’ mortgage range. This new suite of mortgage products is specifically tailored to help individuals who struggle with the conventional mortgage application process due to smaller deposits or credit score challenges. Here’s a detailed breakdown of what this means for potential homeowners.

A Helping Hand for First-Time Buyers

Reach Mortgages are designed to bridge the gap for those who may find themselves excluded from traditional mortgage options, particularly first-time buyers. This new range provides a lifeline for those whose credit scores don’t align with the requirements of standard mortgage products offered by the Society.

Flexible Options for Diverse Needs

The Reach Mortgage range includes various options to cater to different financial situations. These include:

• Fixed-Rate Options: Borrowers can choose from two-year, three-year, and five-year fixed-rate mortgages.
• High Loan-to-Value Ratios: These mortgages offer loan-to-value (LTV) ratios ranging from 80% to 95%, making them suitable for those with smaller deposits.
• Customizable Terms: The range also features diverse fixed-rate periods, product fees, and loan-to-value tiers, allowing for personalized mortgage solutions.

Additional Support for Borrowers

Earlier this year, Leeds Building Society collaborated with Experian Boost, enabling borrowers to enhance their credit scores. This innovative partnership allows the inclusion of regular payments, such as council tax, in credit score calculations, providing a more comprehensive view of an individual’s financial responsibility.

Saving for a Deposit Made Easier

In tandem with Reach Mortgages, the Society has also introduced the Home Deposit Saver account. This unique savings vehicle offers a £500 bonus to assist those stepping onto the property ladder, further easing the path to home ownership.

A Commitment to Inclusive Lending

Matt Bartle, the director of products at Leeds Building Society, emphasizes the importance of inclusivity in lending. He acknowledges that credit scores can be a significant barrier to home ownership. By introducing Reach Mortgages and supporting initiatives, the Society aims to increase mortgage application acceptance rates and help more individuals achieve their dream of owning a home.