Leeds Building Society aims to help first-time-buyers

Leeds Building Society has announced it is taking measures to help more people find cheap mortgages.

The UK's fifth-largest building society has pledged to increase house purchase lending by 40 per cent in 2011, to reach a total of £1.4 billion.

It said that it hopes the increased home loan availability will allow thousands more first-time buyers get on the property ladder.

"We are committed to supporting more homebuyers by increasing lending and this, combined with the scheme announced by the Chancellor today, will result in thousands more achieving their aspiration of homeownership," said Ian Ward, chief executive of Leeds Building Society.

He also explained that the financial firm's shared ownership schemes, which offer prospective homebuyers a typical share of 50 per cent of the property, should help more people find cheap mortgages.

On a 95 per cent mortgage, with a 50 per cent shared ownership deal, the customer only needs to find a 2.5 per cent deposit, Mr Ward explained.

However, Ruth Lythe, writing for the Guardian, said there are pros and cons to a shared ownership scheme and they are not the solution for everyone.

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2011-03-23 14:02:57 © Moneyextra.com