Leeds Constructing Society has launched a financial savings account for debtors with shared possession mortgages who wish to buy a higher share of their house in future.
The account has an rate of interest of 6% so clients with shared possession properties can construct their financial savings sooner and have higher potential for ‘staircasing’.
Shared possession permits consumers to buy a proportion of a property and lease the remaining. Staircasing is the identify given to the method the place they will enhance the share of the property they personal in increments.
The financial savings account, which is accessible to debtors who’ve taken out a shared possession mortgage with Leeds Constructing Society, comes at a time when demand for shared possession has grown.
The constructing society mentioned it had seen a 19% enhance in purposes for Shared Possession mortgages within the first 5 months of 2023 in comparison with the identical time interval the 12 months earlier than. It mentioned this was in response to the difficult housing market and cost of living crisis.
The launch additionally comes as Leeds picked up the Finest Shared Possession Mortgage Lender within the 2023 What Mortgage Awards – its eighth consecutive 12 months of success on this class.
Matt Bartle, director of merchandise at Leeds Constructing Society, mentioned: “At Leeds Constructing Society we constantly search for new methods to assist folks onto and up the property ladder.
“We’re proud to launch this new financial savings product which is tailor-made to the distinctive wants of Shared Possession mortgage holders. Shared Ownership is a great solution to help aspirational homeowners to get a foothold on the property ladder as consumers want a smaller deposit, permitting them to purchase earlier than they may in any other case.
“This new financial savings product launch demonstrates our dedication to serving to members obtain their targets sooner.”
The common Shared Possession property bought by the Society’s members is valued at round £287,700. So, to staircase by a 1% increment, the mortgage holder would wish to save lots of £2,877. Somebody saving £100 per 30 days may attain this objective in two years and three months.
Shared Possession Saver – Key information
- Curiosity Fee: 6.00%
- Minimal Steadiness: £100
- Most Steadiness: £20,000 plus accrued curiosity credited to the account
- Curiosity Paid: yearly on thirtieth June
- Entry: Immediate entry
- Solely out there to clients who’ve a Leeds Constructing Society Shared Possession Mortgage
- The product doesn’t mature and doesn’t have a remaining deposit date
