Bristol extends first-time-buyer initiative with Leeds Building Society

Bristol City Council has teamed up with Leeds Building Society to help even more first-time buyers on to the housing ladder.

They have jointly launched the "A Helping Hand" initiative, which will make even more much-needed 95% mortgages available to local residents who can afford the mortgage repayments but are currently unable to provide a large deposit.

Paul Kaye, General Manager, Sales, at Leeds Building Society said: "We are delighted to work in partnership with Bristol City Council to offer 95% mortgages.

"Leeds Building Society has helped many thousands of customers buy their own home throughout the economic downturn and we continue to increase lending, particularly to first-time-buyers, through our shared ownership, shared equity and guarantor mortgages.

"In the first half of this year, new loans rose to £769m, which represents double our market share. Over a quarter of these mortgages have helped almost 2,500 first-time buyers to buy their first home.

"We support the local communities around our branches and we have a national presence, so we know that other local authorities will follow Bristol City Council and form a similar partnership with us in the near future."

The new 95% mortgage is a five-year fixed rate at only 5.49%, with discounted fees and a free valuation, providing security at an affordable rate. Normal lending criteria will apply, so only those first-time buyers who can comfortably afford to make repayments will benefit.

Nick Hooper, Service Director for Strategic Housing with BCC, said, "We are very pleased to be launching the second Local Mortgage Scheme in Bristol which will help more households in the city who can afford mortgage payments but not the large deposit required, to secure their first home.

"This is a win-win for us. The council invests cash that it was planning to invest anyway, at a higher rate of return. And we can provide a guarantee to the mortgage lender for a loan to cover the deposit which means that more first-time buyers can be helped into affordable home-ownership.

"The scheme is just one of a number of examples of ways in which the local authority is working to tackle the current housing situation."

For more information, visit leedsbuildingsociety.co.uk.