Leeds is rewriting the rulebook for first-time buyers with its Income Plus mortgages, designed to help brokers say “yes” to more aspiring homeowners.
By rethinking how affordability is assessed, this new range of products could boost borrowing potential by up to £66,000 on average, making homeownership more accessible in a challenging market.
BIGGER LOANS FOR BIGGER DREAMS
Borrowers with a household income of at least £40,000 can now access up to 5.5 times their earnings, up from the standard 4.5 times. This translates to a potential maximum borrowing limit of £356,000, compared to the previous cap of £290,000.
Available at up to 95% loan-to-value (LTV) for new build houses (and 85% LTV for flats), the mortgages cater to single and joint applicants, including the self-employed. For environmentally conscious buyers, the Society’s green affordability benefit adds even more flexibility, enhancing affordability for energy-efficient homes with an Energy Performance Certificate (EPC) of A or B.
STRATEGIC SHIFT
Income Plus is part of a broader push to support first-time buyers, including a new affordability calculator to help brokers identify increased lending options.
Martese Carton, Director of Mortgage Distribution at Leeds Building Society, says: “Every ‘yes’ matters. By offering higher loan-to-value and loan-to-income ratios with responsible affordability checks, we’re helping brokers support clients in overcoming barriers like soaring house prices and hefty deposits.”
David Hollingworth of L&C Mortgages says: “Leeds continues to put first-time buyers at the heart of its strategy. Income Plus addresses two key hurdles: affordability constraints and smaller deposits, providing a much-needed lifeline in today’s tough housing market.”
CRUCIAL PRODUCTS
David O’Leary, Executive Director at Home Builders Federation, adds: “With first-time buyers struggling like never before, products like Income Plus are crucial. By addressing mortgage affordability, Leeds Building Society is helping drive demand and support housing delivery.”
Leeds’ Income plus range builds on the society’s track record of putting first-time buyers first. Recent initiatives include halting new loans for second homes to focus on first-time buyers; partnering with Experian Boost to reward good financial habits and pausing holiday let mortgages in select areas to prioritize local buyers.
The seven Income Plus mortgages feature 5-year fixed rates starting from 4.40% (75% LTV) and range up to 5.19% (95% LTV) with no product fee or cashback. All include a free valuation survey worth up to £999 and are available via its Mortgage Hub platform.
